Tds deduction on payment to non residednt.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2014 Hi all,
Suppose there are 3 companies A, B, & X. Co A & B are group companies, A is resident Indian co having registered office in India & Co. B & X are non-resident companies having registered office in malashiya. now audit of Co B (group Co) is taken place, this co does not have bank A/C in malashiya therefore the payment has to be made by the co A (group Co) but this co does not have sufficient funds in its bank accounts therefore Co A ask Co X (non-group Co) to pay the auditor's fees & Co X pay the same. now when the sufficient funds come in the bank A/C of Co A they want to reimburse the fees to Co X. now the question is whether Co A needs to deduct TDS on payment made to Co X?????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 October 2014 The payment by A to X is not for any services rendered which will attract TDS/withholding tax provisions. It is only a payment for discharge of liability.

Message likes : 1 times

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