TDS

This query is : Resolved

shri......... (Querist)
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27 March 2009 Company paid car hire charges to party( for e.g. Mr.X) & deduct TDS @ 2.266%.

company paid advance imprest to its employee & pass the entry :
Advance imprest Dr.
to Cash A/c

& when employee submit the details of Advance imprest then he also submit a bill of Mr. X (for car hire charges), in which he had not deduct TDS.

now will company liable for non deduction of TDS ?

K V Subba Rao

K V Subba Rao (Expert)
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27 March 2009 Employee is making payment for and on behalf of Company. Expenditure is debited in the books of account of Company. So responsibility for affecting TDS lies fully on Company.

While disbursing the amount, if the Custodian of Imprest failed to affect TDS, whether or not disciplinary action should be taken is a matter to be decided by Company

Sanjay Soni

Sanjay Soni (Expert)
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27 March 2009 yes

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Sorabh Gupta

Sorabh Gupta (Expert)
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27 March 2009 Shri

As you told the entry , that i want to chnage i.e.

Advance imprest Dr.
to Cash A/c

Expenses Dr.
To Party Cr,
To TDS Cr.

then your entry i.e.

Party Dr.
To Advance Inprest Cr.

Hope now you are clear.