TDS

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Lone warrior..!! (Querist)

31 August 2010 Is TDS Deductible when
Sitn 1)

Company A in Chennai incurs exp for advt to B for 20k
& Branch of A in Delhi incurs also incurs exp for advt to B for 20k
& branch of ‘A’ in Kolkata incurs exp for advt to B for 20k

Is TDS deductible for all three cases as Company concerned it Crosses 50k per year??

Sitn 2)

Is TDS deductible if Branch in Chennai of A incurs exps for 15,000 to B on 20/08/2010 & on the same day Branch of A in Kolkata incurs Rs. 10000 to B???
Is TDS deductible?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

31 August 2010 Sit.1, If the expenses paid for same person TDS will be applicable

Sit.2

Both are different payment also less than Rs.20000, hence no TDS applicable

Lone warrior..!!

Lone warrior..!! (Querist)

31 August 2010 Sitn 1)

B is also having branches
simple example B is an English daily newspaper with branches all over India...
so B is same company

In
sitn 2)

Both are foe same nature of Expenditure???

Sitn 3)
& i also want to add dat, if in Branch Chennai, paymt to B is TDS deductible

What about in branch of Kolkata if the payment to B of 10000 Rs. will that also be subject to TDS as the branch of Chennai is deducting TDS???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

31 August 2010 Sit.1 TDS deductible

sit.2. even same nature, single payment less than Rs.20000 so TDS not deductible

yes. Kolkata Branch also need to deduct TDS

Lone warrior..!!

Lone warrior..!! (Querist)

01 September 2010 thanks sir for the answers but i guess its practically impossible to verify keeping in mind branches.....

But in Sitn 2 )

The payment crosses 20,000 per day both branches combined together its 25000
so ???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 September 2010 Act is telling single payment only, since the payment made by different branches in different payment so it can be counted 2 payments, so TDS not apply

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