TD Query

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This query is : Resolved

C.A. Deepak Kakkar (Querist)
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20 April 2010 PLEASE GIVE YOUR OPINION:-

X is a transporter.
Z purchases raw materail from Y. X transports the material during the year to the Z place on bahalf of Y.
At the year end Y charges Rs. 5 lacs from Z for this transport service.
What will be the TDS implications??

Thanks in advance

Regards
Deepak Kakkar

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2010 IF Y SUBMITS A SEPARATE BILL FOR REIMBURSEMENT OF TRANSPORTATION CHARGES TO Z AND PAYS EXACTLY THE SAME AMOUNT TO X THEN THERE IS NO IMPLICATION OF TDS ASSUMING TRANSPORTER HAS A PAN.

IF Y DOES NOT SUBMIT SEPARATE BILL FOR REIMBURSEMENT OF TRANSPORTATION CHARGES OR DOES NOT PAY EXACTLY THE SAME AMOUNT RECOVERED FROM Z THEN Z WILL DEDUCT TDS @1% BUT Y WILL NOT DEDUCT ANY TDS FROM X ASSUMING X HAS PAN.

VIEW OF OTHER EXPERTS IS SOLICITED.

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