## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How do I record a transaction in Zoho Books where I received the full invoice amount without TDS deduction, refunded the TDS portion to the customer, and the customer will pay the TDS to the government?

You can either create a credit note or an expense to record the TDS amount refunded to the customer. To create a credit note:

*   Go to _Sales_ on the left sidebar and select **Credit Notes**.
*   Click **\+ New** in the top right corner.
*   In the _New Credit Note_ page, add the TDS amount as a line item, associate it with the **TDS Receivable** account, and select **Out of Scope** as the _Tax_.
*   Click **Save as Open**.

The credit note will be recorded. You can now [record a refund](/in/books/help/credit-note/refund-credits.html) for this credit note.

Similarly, you can also record an expense by associating the refunded amount with the **TDS Receivable** account.