Tds

This query is : Resolved

CMA MUNIKOTI CHANDRA SEKHAR (Querist)
Follow

11 May 2015 Dear all, we have two companies and we paid commission of one company in another one by deducting TDS . Now we want to recover the amount. But how can TDS to be treated in either of the companies?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

11 May 2015 pls narrate your question in more detailed ....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

11 May 2015 1. Payment to the party has been made by C1 on behalf of C2.
.
2.
Situation-1
TDS has been deducted and deposited by C1.

As per Mumbai Tribunal judgement in ITO v.
Vishinda Diamonds (2014)146 ITD 745-C2 is not required to deduct TDS on the amount being reimbursed to C1. Credit Full amount to C1.
.
3. Situation-2
TDS has been deducted but yet not deposited by either of C1 & C2.
.
C2 can discharge the TDS liability itself and shall credit C1 by actual payment amount. C1, has to delete or reverse the entry of TDS in its books.
.

CMA MUNIKOTI CHANDRA SEKHAR

CMA MUNIKOTI CHANDRA SEKHAR (Querist)
Follow

12 May 2015 Dear Paras, for your information we have deposited TDS in C1.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now