12 November 2008
AS PER MY OPINION: HERE B IS BOOKING THE EXPENSE AND A IS JUST LIKE AN INTERMEDIATOR FOR B IE AGENT. AND ALWAYS PRINCIPAL IS LIABLE FOR ANY ACT OF AGENT. HERE A IS LIABLE FOR TDS DEDUCTION, AS HE IS MAKING THE PAYMENT ON BEHALF OF B, BUT IF A DOESNOT DEDUCTED THE TDS THEN CONSEQUENSES WILL BE: THE EXP. WILL BE DISALLOWED IN THE HANDS OF B. AND FOR ALLOWANCE OF THE SAME B HAS TO DEDUCT THE TDS AND DEPOSIT THE SAME TO THE CREDIT OF GOVT.