06 December 2013
one of our service provider shipping co.(A), which provide the service to our co. by the other shipping co. (B), instead of providing itself. the same co. raised bill on the earlier co. the earlier co. make the payment after deducting the TDS.now co.(A) raised the bill on our co.my query is that wether we make the payment to the co.(A)after deducting the TDS or not?
06 December 2013
It seems that Bill raised by Compnay A is of pure reimbursement nature.If it is so,no TDS needs to be deducted.If Co A is charging something for services provided then you need to deduct TDS,if its just raising the seperate invoice for reimbursement then no TDS liabilty on that bill. Reference ITO Vs Dr.Willmar Schwabe India (P) Ltd. [2005] 95 TTJ 53 (Del)
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