TDS Credit Memo

A credit memo is a credit that a company issues due to a mistake in pricing, damaged goods, or some other reason that the buyer or purchaser should be credited with some of the payment that they made.

When you work with credit memos:

• The system calculates the TDS over the amount difference between the original voucher and the credit note if the voucher and the credit note are in the same month.

• If the voucher and the credit note are in the same tax year but a different month, the system does not calculate TDS on the credit note.

• If the original document information is not entered in the localized voucher entry form, the system does not calculate TDS on credit notes.