ANANDA D (Article Assistant) (61 Points)
07 January 2011
Sir i would like to know if the company makes the payment on behalf of third party towards some professional service to the service provider .then the liability to deduct and remit TDS rests on whom?
suppose the company has already deducted and remitted tax under its TAN in the above case then what is the consequences.
Advance Thanks
CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 07 January 2011
Liability for TDS lies on person who is responsible for making payments, in your case it seems that third party is liable for payments, so third is responsible for TDS too.
Or in other words, where expense is booked, from that person, obviously TDS has to be remitted.
If the company has already remitted TDS then, recover the full amount from third party, nothing else can be done. There are some other procedures, that would be tedious.
CA MAULIK
(C.A)
(937 Points)
Replied 07 January 2011
CAN WE SAY SERVICE TAX PROVISIONS ARE ALSO ATTRACTED HERE??
CAclubindia
