Tds on reimbursement

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This query is : Resolved

Aparna Ajay Kulkarni (Querist)

21 August 2012 We are Indian company and one Company in China together is keeping one stall in one exhibition in China. Company in china will pay to the management of exhibition as stall rent or fees. we are making 50% as our share payment to our client China company. we are not directly making payment to exhibition management. Is our payment will be liable to TDS or it will be purely reimbursement of expenses. Please reply

U S Sharma

U S Sharma (Expert)

21 August 2012 without any doubt TDS is applicable, ask the china company to pay the amount less TDS to the organizers.

Amol S Joglekar

Amol S Joglekar (Expert)

21 August 2012 Please try to NAME this payment to CHINA company. Is it out of charity? Is it out of joint venture? What it is and then probably you will get the answer between reimbursement and payment.

Aparna Ajay Kulkarni

Aparna Ajay Kulkarni (Querist)

21 August 2012 Sorry for mistake that exhibition was in Mumbai not in China. Type of payment is our company and China company is sharing 50% of stall. Can you please provide an opinion?

Amol S Joglekar

Amol S Joglekar (Expert)

21 August 2012 Let us look at it. Stall is booked in the name of CHINA company or your company? If you are making a payment on behalf of some other company, the position will be different.

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