21 February 2012
Any one please suggest me on the following issue..!!
There is one Manufacturing company which gave dealership to some of the dealers to sell it's products. For dealers, for settingup their infrastructure and everything to run their dealership, company is making provision in the form of Dealer Development Fund. Whenever dealers incurring any capital expenditure for their infrastructure facilities, company is reimbursing 50% of the amount spent to that dealers. Whether TDS should be made on that reimbursement amount by the company or not...?
21 February 2012
I am of the view that no tds shall be required to be deducted on such payment as the nature of payment shall not be covered under any TDS provisions. Should you even go ahead to decide to deduct TDS there is no appropriate head under which you can deduct.
CAclubindia
