TDS Deduction

This query is : Resolved

sarath (Querist)
Follow

13 May 2009 Suppose a company is working as C&F for a multinational company whose upcountry transportation needs are reimbursed paid by the company. The bill raised by the tranposrter is on the name of the company and not on the C&F name. Then who is liable to deduct the tax.

Zeeshan

Zeeshan (Expert)
Follow

13 May 2009 Actually the company is liable for Tax deduction at source as the expenditure will be booked by the company and non deduction of TDS will attract the disallowance of expenditure to the company.

Practical answer would be
the company should give instruction to deduct TDS from the transportation charges to the C&F on behalf of company as the C&F is making the actual payment to transporter. and the same TDS can be paid by the company to the credit of Central govt.

The above is strictly my Personal opinion. Some other expert may make a distinguish opinion looking to the text language of Section 194C.

taxindiaconnect

taxindiaconnect (Expert)
Follow

13 May 2009 The deduction of the tax at source is the liability of the person who is paying the income to the payee. In this case sicne the c&f is paying it to the transporter, hence liable to deduct and pay to tax departmet. I agree with Zeeshan on the

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anju Susan

Girdhar Harlalka

zafar chandwale

atul kumar soni

T E SOUNDARARAJAN

Subscribe Now

TDS Deduction

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

Article Assistant

Manager- Finance and Compliance

CA Final

Accountant