TDS - 194C - ADVT. CONTRACT
This query is : Resolved
30 April 2008
Please clarify :-
As per Income tax provision, if payment to contractor exceeding Rs.20000/-(single payment) or 50,000/- (one year), we will deduct TDS 1% with applicable sc & cess for Advt. contract. As per circular no 715 reimbursement expenses can not be deducted out of the bill amount.
If one company pay the entire advt. exp (say Rs. 250000) and reimburse from other group companies in share basis. If the share of the one company exceed the minimum amount which is not required to deduct TDS ( say Rs. 55,000).
What amount to be deducted as TDS for the Main company (entire amount or his portion) and Partipating company for its payment of Rs. 50000/- ?
As per Income tax provision, if payment to contractor exceeding Rs.20000/-(single payment) or 50,000/- (one year), we will deduct TDS 1% with applicable sc & cess for Advt. contract. As per circular no 715 reimbursement expenses can not be deducted out of the bill amount.
If one company pay the entire advt. exp (say Rs. 250000) and reimburse from other group companies in share basis. If the share of the one company exceed the minimum amount which is not required to deduct TDS ( say Rs. 55,000).
What amount to be deducted as TDS for the Main company (entire amount or his portion) and Partipating company for its payment of Rs. 50000/- ?
30 April 2008
Payment is made by the main company to the contractor in pursuance of a contract between the main company and the contractor. The main company should deduct the entire amount of tds.
The arrangement between the group companies is basically apportionment/allocation of joint expenses and can not be treated as a payment in pursuance of a contract and hence does not fall within 194C's net.
How ever, looking forward to more views.
The arrangement between the group companies is basically apportionment/allocation of joint expenses and can not be treated as a payment in pursuance of a contract and hence does not fall within 194C's net.
How ever, looking forward to more views.
30 April 2008
the main (Paying company) should deduct TDS and can take credit for the same.
The liability to deduct tds is of payer and not of the cost center.
The liability to deduct tds is of payer and not of the cost center.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
