13 May 2009
Suppose a company is working as C&F for a multinational company whose upcountry transportation needs are reimbursed paid by the company. The bill raised by the tranposrter is on the name of the company and not on the C&F name. Then who is liable to deduct the tax.
13 May 2009
Actually the company is liable for Tax deduction at source as the expenditure will be booked by the company and non deduction of TDS will attract the disallowance of expenditure to the company.
Practical answer would be the company should give instruction to deduct TDS from the transportation charges to the C&F on behalf of company as the C&F is making the actual payment to transporter. and the same TDS can be paid by the company to the credit of Central govt.
The above is strictly my Personal opinion. Some other expert may make a distinguish opinion looking to the text language of Section 194C.
13 May 2009
The deduction of the tax at source is the liability of the person who is paying the income to the payee. In this case sicne the c&f is paying it to the transporter, hence liable to deduct and pay to tax departmet. I agree with Zeeshan on the
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