TDS Calculation on Payable Credit Memo

Comments

• ssingla Member Posts: 2,973

  2008-01-22

  There is no law to reverse TDS by passing Credit Memo/debit note to vendor therefore the functionality does not exist.

  CA Sandeep Singla
  http://ssdynamics.co.in

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• vyanku Member Posts: 791

  2008-01-22

  Thanx for the reply Sandeepji,
  
  What should be the way out for it because the vendor will be opposing for deduction of excess TDS?

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• ssingla Member Posts: 2,973

  2008-01-22

  You can use the TDS adjustment journal with a cmobination of JV to pass the rectification entry. But this should be done before deposit of TDS amount with the statutory authourities.

  CA Sandeep Singla
  http://ssdynamics.co.in

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• vyanku Member Posts: 791

  2008-01-22

  TDS adjustment journal could have been one of the option but one can change TDS% and not the TDS base Amount..
  
  
  eg:
  If I posted a Purchase invoice of Transportation for RS.10000/ and deducted TDS
  Latter I deducted Rs.1000/- accordingly TDS for the same should be calculated.
  
  If we don’t do this practice the Transporter TDS will be deducted in excess.....

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• ssingla Member Posts: 2,973

  2008-01-22

  As per TDS laws there is no provision for revision of TDS amount on debit notes. The vendor will be liable to deduction of income tax on the invoice and even if full amount of invoice is reversed by credit memo. The only remedy available to the vendor is to claim back the TDS from Income Tax Department.

  CA Sandeep Singla
  http://ssdynamics.co.in

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