01 May 2010
Sir, i have a doubt which i will convey through the following example:
Suppose A Ltd. gives L/C(Letter of Credit) to B Ltd against purchase of goods. The commission(Rs 1,00,000) paid by A Ltd. to bank issuing L/C is reimbursed by B Ltd. to A Ltd. on the basis of Debit Note given by A Ltd. to B Ltd. Now does TDS Liability arise for B Ltd. for reimbursing commission to A Ltd???? Entry in B Ltd.'s books- Commission A/C 1,00,000 To A Ltd. 1,00,000 (Being L/C commission reimbursed)
CAclubindia
