Pls let me know with reasoning whether Tds is deductible in case we reimburse any Exp.
Eg: Freight Exp.
Even in case of Reimbursement?
But Sir, here were does the contract for frieght exist between us and our vendor? Just the party has raised debit note on us for the same.Pls can you explain me from where does the provision of TDS becomes applicable in such case?
Pls let me make the case more clear. The vendor has supplied us some material and freight exp in relation to the same is reimbursed by us to our vendor who in turn will pay the same to transport Co.
But here our vendor is sending us material, and we are paying them freight which they will pass on to transport co.
30 October 2009
According to section 194C Tds is need to be deducted when payment made to a resident contractor in respect of any work done.
The term work includes inter alia carriage of goods and passengers by any mode of transport, other than railways
Next question is who makes the payment if the person the paying the amount to the contractor is Individual or HUF,AOP or BOI these persons must be TAX audit assessees (44AB) in the preceding previous year.
CAclubindia
