TDS on interbranch transactions

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2010 Incase of interbranch transactions, whether TDS is to be deducted by the branch claiming the expenditure or by the branch making the payment to creditor?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

28 December 2010 Paying branch is different from the branch where expenditure is actually incurred. TDS liability arises when the bill of expenditure is credited. So, TDS will be deducted when the expenditure will be booked and practically it will be booked by the branch which is incurring the expenditure.

So in such a case, paying Branch should pay the amount after TDS to the payee.
However, TDS would be deposited by the branch deducting the TDS.

Message likes : 1 times

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

28 December 2010 whether paying branch or actual expenses booking branch any one can be deduct the TDS but final expenses can be claimed as one entity level as one expenses

Upgrade to CAclubindia Pro. Subscribe Now!

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

29 December 2010 A practical solution shall be to deduct the TDS at the level where the bill/invoice is accounted.