Nagesh M R (Service) (113 Points)
23 March 2009Company "A" is making payment of its sister company like "X", "Y" and "Z"
Including common expenditure like, rent, electricity, coffee, tea etc., in the month end Company "A" will raise invoice/debit note to X, Y, Z.
At the time of company X making payment to A, whether TDS should be deducted or not.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 23 March 2009
No TDS is appliacble on reimbursement.
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 24 March 2009
Tax is to be deducted at the time of payment to 'A'
Kiran Kumar V
(C.A. Final)
(181 Points)
Replied 24 March 2009
T.D.S. shall be deducted at the time of payment to A
no T.D.S. on reimbursement of such expenses from its sister concerns
Regards,
Kiran Kumar V
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 24 March 2009
TDS is applicable on rent under sec 194I if paymant in excess of 1,20,000/= P.A.
electicity & tea exps. is rembursment . no tds on reimbursment
srinivas
(Accounts Executive)
(24 Points)
Replied 24 March 2009
A comapy is holly subsidary company of D , A provideing technical support to D, in this case how TDS deductable from A invoice there is no exp like tea, coffee
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