banner_ad

Payment to third party

This query is : Resolved 
Profile Image

Profile Image

(Querist)
06 August 2010 Any1 please tell me Income Tax implication regarding Payment to third party.
Like Company purchased material from Party 1 but made payment to Party 2. party 1 is our creditor and Party 2 is the creditor of Party 1.
Is any income tax implication arises.
If, yes then what the solution any thing in written on letterhead can be taken from party 1.

Please reply soon.

It's very Urgent!
Profile Image

VINOD ARORA

Profile Image

VINOD ARORA (Expert)
06 August 2010 Payments may be made on behalf of creditors to third party suppliers/contractors to expedite the business and there is nothing wrong if the same is done in writing with request/consent of both parties in writing.

However while doing payment you have to withold taxes as may be applicable to your direct supplier and accounting also to be made/routed thru direct supplier's account. Only net amount cheque may be issued to third party as on behalf payment.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details