TDS on EPABX equipment hired for customers

This query is : Resolved

varsha (Querist)
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07 November 2008 A is telecom company, it enters into tri-partiate agreement with customers and C(company who is owner of equipment). Customers would be provided services and equipment of EPBX by C while A would provide telecom services. Billing would be done by A for telecom and equipment. It would pass on the hiring charges of equipment to C. SHould A deduct tds on paymnt to C

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 November 2008 How will A bill for equipment if he does not own it? If it s by tri-partite agreement A has been authorised by C to bill, THen he has to raise bills separately for equipment hire and telecom services and TDS would be deducted accordingly.

varsha

varsha (Querist)
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07 November 2008 Mr srini, yes A is authorised by C to collect the payments from the customers. For this C will raise bill on A and A will raise bill on customers. My query is whether A should deduct TDS while paying to C.

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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08 November 2008 When hire bill raised, on behalf of C, by A on customers, at that time itself TDS has to be deducted.