CA.Varalakshmi.M (Manager-Finance) (482 Points)
27 May 2013Hello All,
X company made payment on behalf of Y for security services availed by Y and security services invoice is in the name of Y. As services are taken by Y , it is Y company obligation to deduct TDS and remit it to Govt. But X company has already deducted TDS and remitted to Govt.
In this case can Y take certificate from X company that Y comp obligation was discharged by X?
Please suggest me, Thanks in Advance.
shiv shankar rawat student CMA
(Manager)
(263 Points)
Replied 03 June 2013
Dear Sir
Pls clear X AND Y both the related party or not
Rgds
S.S.RAWAT
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 03 June 2013
No , they are not related parties.
shiv shankar rawat student CMA
(Manager)
(263 Points)
Replied 04 June 2013
Dear Sir
IF I AM RIGHT. In above case X Company Is a security agency and they are providing secuirty service to another also and Y Company is service receiver. As per income tax act 1961 and Sec194 C, "Y Company" is liable to deduct TDS and deposit the same on a/c of Govt.
X Compnay can't deducted TDS on behalf of Y Company ,whenver they are not related party as per AS-18.
In second thing TDS already deposit by X Company after consider the own PAN No/TAN
Anand Sanga
(Accounts Executive)
(92 Points)
Replied 04 June 2013
Even if they are related parties also, X can't discharge the TDS obligations of Y where bills are in the name of Y.
CAclubindia
