What should an agent do if unsure whether TDS has been deducted by the client?

What should an agent do if unsure whether TDS has been deducted by the client?

⚡Quick answer

While settling the payment, check that the amount received equals the amount requested.

• If the amount received is less, it may indicate that the client has deducted TDS.

• Verify that any deduction matches the prescribed TDS rates (TDS can be deducted only on the service amount).

• If the figures do not align with the statutory rates, confirm the TDS calculation with the client before settling the payment.

When should I use this guide?

Use this checklist whenever a payment hits your account for less than the invoiced amount, and you need to confirm whether TDS has been applied correctly.




1. Policy rule

As per the TDS Act, TDS can be deducted on the service amount only, at the prescribed TDS rates.




2. Step-by-step verification

  1. While settling the payment, the agent must ensure that the amount received matches the requested amount.
  2. If the amount received is less than the requested amount, it may indicate that the client has deducted TDS.
  3. If the calculation does not match the prescribed TDS rates, the agent must verify with the client regarding the TDS calculation before proceeding to settle the payment