I am having query regarding witholding Tax.
We have made advance payment to vendor and TDS is deducted on the same, now when we are entering invoice again TDS is deducted.
How we should we adjust the amount on which TDS is already deducted.
Say we have paid advance of Rs 100000/- to XYZ ltd and TDS deducted on it is Rs 1000/- @ 1%.
We are receiving Invoice of Rs. 120000/- from XYZ ltd, while booking the invoice TDS should on balance amount should be deducted i.e. Rs. 20000/-.and not on Rs 120000/-.