SURANA (PROPRIETOR) (515 Points)
05 October 2014Hello
Is TDS applicable on the Amount paid for testing & Inspection Charges debited by Party.
For Example: X ordered Y for a particular Material along with 3rd Party Inspection Certificate.
Y got the material inspected and paid Rs.200000/- as Testing & Inspection charges to Z and charged the same to X.
So Who is liable to Deduct TDS on this 200000/-?
thank you for your replies..
Mihir
(Wealth Manager)
(5293 Points)
Replied 05 October 2014
If Z has raised the bill in the name of Y, then Y will have to deduct TDS while making payment to Z. And if Y forward the bill to X, the X will reimburse to Y without deducting TDS.
Wait for more replies.
SURANA
(PROPRIETOR)
(515 Points)
Replied 05 October 2014
Even i was thinking the same... then the example of CHA came in my mind.. where the CHA raises a bill and also adds some of the reimbursement expensed which CHA has paid on behalf ... and normally all those reimbursement bill are raised on consignee/consignor name .. but still no TDS is deducted by consignee/consignor on it since the payment was made by CHA.
Or consignee / consignor are liable to deduct TDS on such amount event though CHA has paid for it..
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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