Dear Sir/Madam,
A manpower company (called company A) conducting an interview. An another manpower company (called Company B) is giving candidates for the same interview. Now for giving the candidates, Company B is asking Rs. 5,000/- per candidate as a Service Charge from Company A. That is, if the candidate given by Company B is selected in the interview, then the candidate make the payment to Company A. And from that, Company A has to pay Rs. 5,000/- to Company B. Company A is agreed for this. Totally 12 candidate were selected. So, Rs. 5,000*12 = Rs. 60,000/- is payable [there is NEITHER A WRITTEN CONTRACT, NOR A WRITTEN CONTRACT FOR CONTINUOUS SUPPLY OF SERVICE IN FUTURE].
Now my question is, whether Company A needs to deduct TDS for the payment they make to Company B or not ?
If yes, under which section will it come?
Thanks in advance!
CAclubindia
