08 March 2013
I being a company assessee (MNP Ltd), deploy some person for vocational training at XYZ institute. XYZ institue hire a cleaning agency (ABC society) for cleaning premises where training is provided. XYZ institute wants me to pay directly to cleaning agency (ABC society). If i make payment to ABC society WHETHER TDS IS TO BE DEDUCTED ON SUCH PAYMENT TO ABC SOCIETY???
08 March 2013
yes, there is TDS liability. you are paying for cleaning contract if bill is in MNP Ltd then it is your liability if bill is of XYZ institute but you are paying then you must deduct TDS and get reimbursement. in both cases TDS will be deducted
08 March 2013
Bill is in the name of XYZ institute. Further If TDS liability is arised, Whose PAN will be required??? If i will deposit the deducted TDS then by which name it will be deposited ABC Society OR XYZ Institute???
09 March 2013
when TDS is deducted then on whom TDS is deduted, his PAN is to be use. So in TDS return ABC society PAN will be provided otherwise they can't claim TDS. XYZ institute will reimburse you full amount without TDS.
CAclubindia
