TDS issue

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2010 Sirs;
A charitable trust 'A' employed teachers & deputed them to teach in another trust 'B'. Though salaries are paid by 'A', the same are booked by 'B' at the end of financial year upon instructions from 'A'. I have two questions.
1. Does 'B' need to deduct TDS if they are sent to teach in an ordinary sense (not on deputation)?
2. Is TDS applicable, if they are sent on
'DEPUTATION' to teach in 'B'?
3. Which trust will issue form 16 to
such staff ? The trust 'A' which pays salaries or 'B' which avails their services & books salaries as an expense?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 June 2010 TDS on salary need ti deduct where the employee and employer relationship exist, in your case TDS obviously need to deduct Trust A only. B is no right to book the expenses even deputation also

For the expenses booking purpose you can raise a debit advice or Invoice for man hours utlisation for B and boo the bill form 16 also need to issue by A only

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