sankalp (Tax Consultant ( Income Service Sale Tax )) (107 Points)
30 December 2010
Our company have office on lease that office share with another “ X “ pvt Ltd co. we have paid full Rent to landlord through Cheque. ( 30,000/- Less Tds Rs.3,000/- pm )
Other hand we raised debit note on X co Rs.20, 000/- without any tax they make payment to us after deducted Tds pm.
I have 2 ?
1) Whether it is Reimbursement?
2) Tds deduction is correct ?
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 30 December 2010
It is just reimbusment of expenditure ......... In my opinion you are just require to reverse the entry to the extant of amount recived by you i.e. Rent expence A/c or alternativly we can treat it as an income also........ and we can claim TDS credit there.
any of the policy can be followed ..... i think there is no such specific guidline on this .....therefor choose any one out of this and disclose the same in notes to A/c
Regards
Madhusudan Kabra
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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