A is paying Advertisement expenditure on behalf of B ( Say Sister Concern ), A is also deducting the TDS at time of making payment. Now the issue is whether B is supposed to deduct the TDS while making the payment to A. ( There were no element of Profit )
25 June 2010
Since A is making the payment on bahalf of B, the expenses is not pertaining to A. Hence A need not book the element of TDS. It can just show the net payment by debiting B.
B has to book the expenses and book the TDS entry and pass the JV for payment made by A.
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