How to deduct TDS from Dealers if company paid

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Vijayakumar (Querist)
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25 July 2011 Please Experts...

My company going to pay Advertisement for 2 lakh and 1 lakh is expenses for company and 1 lakh for dealer. Dealer amount will be recovered by company.

Q1: What is the TDS process, is there deduct TDS for 2 lakh if company get full value of bill
Q2: If get seperate bill then how to treat balance amount in accounts

Thanks & Regards
S. Vijayakumar

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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25 July 2011 Q1 : Company pays 2L for advt & recover 1 lac from dealer.

Ans : Company will deduct TDS on 2L. There will be no TDS on the recovery of 1 L.

Q2. If separate bill for 1L each in the names of company & dealer is raised, then both company & dealer will directly pay to the advertiser & both will deduct TDS on its part of bill.

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