hello every,
Please reply me for the following
A company some dealer for sale and supply of its products. The dealers have made certain expenditure for advertisement of2 lacs and paid to advertisement agencies. Company is paying back (by way of credit note) for these expenses to the dealer on submission of the bills for advertisement (Original bill not bill of delear). The bill of the advertisement agency is in the name of the company itself.
Q.1 whether company is required to deduct TDS u/s 194C as the bill is in the name of the company, if yes then deduction against advertisement company or delear? or it just can be treated as reimbursement of expenses and not required by th e compnay to TDS.
Q.2 If answer of Q.1 is no, then whether it can be treated as contract (between company and delear) and sub-contract (between delear and agency) and required by the compnay to deduct TDS?
In my opinion, since the bill is in the name of the company itself hence company is required to deduct TDS (against advertisement agency) and can not be treated as reimbursement.
even if the original bill was in the name of dealer company would be required to deduct TDS treating it as an agreement between delear and company (against delear).
please let me know ur reply on this with reason and if any one can suggest case law or circular, that will be great help.
CAclubindia
