Tds in special cases

This query is : Resolved

Manu Kohli (Querist)
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26 September 2011 I am a distributer of a moile company.The company has paid commission to retailers directly by trasfering the amount to my retailers in form of virtual recharge & in turn company has deducted TDS on our account showing debit/credit entries to our account. Please suggest me that shall i omit those enteries in my books and not claim TDS on these entries(as those are not part of my income and neither i have transfered any amt to retailers it is the company who transfers the amount). If i incoporate those entries in my books, i will stand liable(will i be liable) for deducting TDS on those which is not possible for me to deduct as i am unaware of amount that is being transfered to the retailers and i play no role in tranfering the amount. Please suggest me the correct accounting treatment for the same.

CS Bijoy

CS Bijoy (Expert)
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29 September 2011 If the transfer take place via you that means company paying the commission to you or to the retailer directly if payment made directly to the retailer than TDS need to deduct from Retailer.