Tds

This query is : Resolved

CA. Ankit Garg (Querist)
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08 March 2013 I being a company assessee (MNP Ltd), deploy some person for vocational training at XYZ institute. XYZ institue hire a cleaning agency (ABC society) for cleaning premises where training is provided. XYZ institute wants me to pay directly to cleaning agency (ABC society).
If i make payment to ABC society WHETHER TDS IS TO BE DEDUCTED ON SUCH PAYMENT TO ABC SOCIETY???

CA Prashant Gupta

CA Prashant Gupta (Expert)
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08 March 2013 yes, there is TDS liability. you are paying for cleaning contract
if bill is in MNP Ltd then it is your liability
if bill is of XYZ institute but you are paying then you must deduct TDS and get reimbursement.
in both cases TDS will be deducted

CA. Ankit Garg

CA. Ankit Garg (Querist)
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08 March 2013 Bill is in the name of XYZ institute.
Further If TDS liability is arised, Whose PAN will be required???
If i will deposit the deducted TDS then by which name it will be deposited
ABC Society OR XYZ Institute???

CA Prashant Gupta

CA Prashant Gupta (Expert)
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09 March 2013 when TDS is deducted then on whom TDS is deduted, his PAN is to be use.
So in TDS return ABC society PAN will be provided otherwise they can't claim TDS.
XYZ institute will reimburse you full amount without TDS.

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