TDS AND TCS on intercompany and interbranch transactions


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Quick Summary
This discussion clarifies the applicability of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) on intercompany and interbranch transactions. Interbranch stock transfers are generally not considered taxable, meaning TDS/TCS is not applicable. However, intercompany transactions are treated as sales, which can give rise to tax liabilities.

(Querist)
20 July 2023 Is TDS/TCS applicable on inter company and inter branch ( Stk tranfer) transactions

20 July 2023 Inter branch transfer is not taxable. So, no TDS/TCS applicable.

Smrity (Querist)
22 July 2023 Thank you for your reply , also want to know about TDS / TCS on intercompany transactions

22 July 2023 It will be treated as sell & hence the liabilities will arise.

15 September 2024 Good luck.


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