TDS on Reimbursement
This query is : Open
14 August 2009
Hi Guys,
Let me decribe you the case, we r a software co. we have a investor who have funded to our co. initially they were conducted "Due Deligence Audit" of our co. and they paid audit fees to the auditor after deducting appropriate TDS on that, the fee was Rs 2 lac, now our investors want us to "reimburse" them the charges paid by them to auditor, here do we need to deduct TDS from their payment???
Some questions???
1. We have not received services directly from investors to whome we are reimbursing these money, so can we book as audit expenses???
2. This is not going to be revenue of investor as they are just transfering expenses to us their is no mark up any thing, here what TDS provision exactly say???
Requesting you to please give any back up to your response.
waiting for your reply.
Regards,
Nazir
Let me decribe you the case, we r a software co. we have a investor who have funded to our co. initially they were conducted "Due Deligence Audit" of our co. and they paid audit fees to the auditor after deducting appropriate TDS on that, the fee was Rs 2 lac, now our investors want us to "reimburse" them the charges paid by them to auditor, here do we need to deduct TDS from their payment???
Some questions???
1. We have not received services directly from investors to whome we are reimbursing these money, so can we book as audit expenses???
2. This is not going to be revenue of investor as they are just transfering expenses to us their is no mark up any thing, here what TDS provision exactly say???
Requesting you to please give any back up to your response.
waiting for your reply.
Regards,
Nazir
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