TDS on allocation of Advertisement expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 We are a association of persons. We deducted TDS of contractor while making payment of Advertisement contracts. Then we allocate the advertisement expenses to our members. I want to clarify whehter Associate member need to deducted TDS while making payment to Association. As the association has already deducted TDS while making payment for advertisement. If not, then can someone suggests relevant circular or any case law for the same.

taxindiaconnect

taxindiaconnect (Expert)
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14 December 2010 The answer to your query is hidden in your query itself. The primary responsibility of the tax deduction at source is of the person who is making the payment to the contract which is AOP in your case which has duly deducted TDS, so no TDS required to be deducted by the members as they are just shareing a cost.