Tds applicability on pure agent services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2013 Dear Sir,
Please clarify the following,
we have the following parties,
1) sss p ltd
2) party x
3) party y
if party x provides open land on monthly rent to party y but billing is on the name of sss p ltd on account of party y
i) here sss p ltd paying rent first to x
ii)sss p ltd claiming reimbursement from y

what are the areas of tds applicability, is sss p ltd required to make tds

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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23 April 2013 Pls Clarify What is the connection between party Y and SSS p Ltd.

since the expenses are to be claimed by party Y

Party Y should deduct the TDS but the billing is in the name of SSS p Ltd. that would also get covered by TDS

party Y should get the billing in the name of them so as to avoid any issues

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2013 infact, sss p ltd is handling the imported goods of party y but it is not having the warehouse and hence sss p ltd approaches party x which is having warehouse, for that sss p ltd first pay the warehouse rent to party x and then subsequently re imbursed from party y, here no body is deducting tds, here is sss p ltd required to make tds at the time of making payment to party x'
ex ; sss p ltd make the pmt 45000 after deducting 5000 tds and then subsequently re imburse the amount from party y 45000 or else

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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23 April 2013 After reading the full facts

its perfectly right

that SSS P Ltd deducting TDS and making payment to party Y

but for re-imbursement
how they are recovering the money

i mean to say that are the SSS p ltd recovering the money as there fees for handling import

or just a re-imbursement if re-imbursement then what is the relation between party Y and SSS p Ltd.

and what is the other activities or business of SSS p Ltd except handling import of Party Y

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2013 sss p ltd is a shipping co.which is carrying container handling and cargo warehousing but if there is no space in its godown it will approach to party x but party y is the debtor for the co.which it collects handling chrgs from x and also collects the amt paid to x for ware housing