17 April 2010
A holding co paid 3 month salary to sister concerns staff.and issued debit note for the same.sister concern has deducted tds on the said debit note at@2%and made balance paymante.now holding company is opposing that tds on said debit note should not be deducted.pls give me solution that who is right.
17 April 2010
NO TDS WILL BE DEDUCTED ON SUCH DEBIT NOTE. BECAUSE SALARY IS PAID BY HOLDING COMPANY ON BEHALF OF SISTER COMPANIES I.E ON ACCOUNT OF THEM. IT IS FUND ARRAGEMENT. HENCE NO TDS WILL BE DEDUCTED.
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