Tds

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2012 Suppose a company is organising an event for its employees and their families. The company have an unregistered club (No pan number)who organises the event. The club calls a singing star for his performance in the event.The company has given an advance of Rs 1,80,000/- to an employee for paying to the artist.The payment is done without deducting TDS. IS it valid????

Amol S Joglekar

Amol S Joglekar (Expert)
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24 August 2012 The company is definitely at RISK by not deducting the TDS. Doing employee welfare is subject matter of TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2012 Paying on behalf of that unregistered club will work or not?

Also the advance is paid to employee who coordinates with the artists and then he pay directly to the artist. After thet, the employee submits the bill to the company and then the amount is completely expended. No TDS is being Deducted in the Process.

Do this process attracts TDS and how....????

Amol S Joglekar

Amol S Joglekar (Expert)
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29 August 2012 Let us ask the company whether it wants 180000 as "Profit 7 loss a/c" item or ' Balance Sheet' item.

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 The company have this item as a balance sheet item. The expense is not being charged in P / L account rather it is being debited to Advance to club account. The club has its own accounts.

Amol S Joglekar

Amol S Joglekar (Expert)
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30 August 2012 How many years this item is going to stay as ADVANCE in BALANCE SHEET?

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 An amount is recovered fromthe employees and credited to the advance account every months. Not years all such expenses are indirectly recovered from the employees from their salary...

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