07 January 2011
Sir i would like to know if the company makes the payment on behalf of third party towards works contract to the contractor who has built a showroom for the third party, then the liability to deduct and remit TDS rests on whom.
suppose the company has already deducted and remitted tax under its TAN in the above case then what is the consequences.
07 January 2011
Dear Hemant Tax deduction is liability of the person who are liable to make payment and upon whom bill has been raised by the contactor not the person who are making payment . your company have make payment on behalf of the other person to whom your company may be liable to paid .but in real since your company are making payment to the contactor as a cross settlement but in real since your company is not liable to make that payment ,if your company is not directly involve in the contact . So as far i think it was not your company's responsibility to make payment .
CAclubindia
