Arvind (Article) (150 Points)
20 March 2009
| There is company called A whose accounts are directly debited by bank for stock audit carried out on behalf of company and company has booked that expenses under legal & Professional fees but as that amount paid comes to Rs. 30000 but bank has not deducted any TDS and and stock auditor already got their payment.So in this how A company can deduct tax? or book that expense under BAnk charges? |
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 20 March 2009
Payment to the auditor has been made by the bank. Bank must have debited the TDS, it is banks responsibility, who is making payment for services.
The company is merely reimbursing the expenditure to bank- no TDS is required to be deducted.
CAclubindia
