Mismatch in Turnover based on Amazon's TDS Filing and GSTR Reports
Hey Folks,
There is vast difference is turnover when comparing GSTR Reports and Amazon’s TDS Report.
Few key points noticed are -
When an item is returned back to seller the TCS gets refunded. Hence according to GSTR the turnover is lesser
But TDS is deducted everyday on the entire day’s sale value. If an item gets cancelled or returned back to seller there is no rectification filed for this TDS. Hence according to Amazon TDS Deduction mechanism - the turnover is very high.
One additional point is - TDS (1%) is deducted on the entire sale value (including GST) - but for turnover estimation GST is to be excluded as it is not a part of the turnover. Hence the TDS Deducted by Amazon results in a much higher turnover estimate.
Income Tax Dept might raise an inquiry on the return filed for lesser turnover comparing to Amazon’s high TDS Deduct.
Has anyone faced such issue in the past? What are the best steps you would recommend to tackle this?
Mismatch in Turnover based on Amazon's TDS Filing and GSTR Reports
Hey Folks,
There is vast difference is turnover when comparing GSTR Reports and Amazon’s TDS Report.
Few key points noticed are -
When an item is returned back to seller the TCS gets refunded. Hence according to GSTR the turnover is lesser
But TDS is deducted everyday on the entire day’s sale value. If an item gets cancelled or returned back to seller there is no rectification filed for this TDS. Hence according to Amazon TDS Deduction mechanism - the turnover is very high.
One additional point is - TDS (1%) is deducted on the entire sale value (including GST) - but for turnover estimation GST is to be excluded as it is not a part of the turnover. Hence the TDS Deducted by Amazon results in a much higher turnover estimate.
Income Tax Dept might raise an inquiry on the return filed for lesser turnover comparing to Amazon’s high TDS Deduct.
Has anyone faced such issue in the past? What are the best steps you would recommend to tackle this?
4 Antworten
Seller_eSR3n7VJjlNgY
I am facing a similar issue Did you find the reason for difference in GST Returns and Section 194O?
Seller_tZRq26VvXc13v
I faced this problem in the past.
Don't worry as per my personal experience Income Tax Dept. won't raise any inquiry in case of a High TDS Turnover and Lesser GST turnover mismatch.
There will always be a mismatch in both of these.
Because
- GST Turnover is calculated after considering the Net Sales Amount (Net Sales = Gross Sales - Returns).
- And TDS Turnover is calculated on the basis of Gross Sales Amount (in this they don't consider Returns that's why there are no adjustment entries for TDS transactions in return cases.
- TDS money deducted from your account directly goes to the government via Amazon, and this TDS amount gets refunded back to you annually by the government when you file your ITR.
I hope this might help.
