TDS

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Ashwani (Querist)
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28 January 2009 M/s ABC Pvt. Ltd. paid some amount on behalf of his group company M/s XYZ Pvt Ltd.on contractual payment and deduct tax on the amount. But my question is that the amount paid by ABC on behalf of XYZ is not the expenses of ABC. Is it right to deduct the TDS by ABC. What is treatment when XYZ reimburse the total amount to ABC. When XYZ booked his expenses then the question of TDS is alos arised but it is not an income of ABC. How can treat such transation in the both co.'s books. Is the provision of section of 269SS is attracted.

Kota Ramanjaneyulu

Kota Ramanjaneyulu (Expert)
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28 January 2009 is there any contract between M/s.ABC Pvt.Ltd and M/s.XYZ pvt.Ltd. to pay the amount on behalf of the XYZ Pvt.Ltd for any kind of payment or only for the selected transactions

Ashwani

Ashwani (Querist)
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28 January 2009 N0 sir, there is no contract between M/s ABC Pvt. Ltd. and M/s XYZ Pvt. Ltd. for any kind of payment. There is one thing is that the Some directors are common between companies

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