20 March 2009
A. Ltd. has given a contract to B. Ltd. for construction of a plant. A. Ltd. has paid professional fees on behalf of B. Ltd. after deducting TDS. Expenditure is born by B. Ltd. So who is responsible to give Form 16 A?
20 March 2009
If A Ltd. made any payment on behalf of B Ltd. that payment will be treated as payment made to B Ltd. and if B Ltd. needs to deduct TDS on those payments then it is liability of B to deduct TDS and deposit TDS, submit TDS return as well as issue TDS certificates.
A Ltd. is separate identity, it cannot deduct TDS on behalf of B as well cannot issue TDS certificates.
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