TDS on Reimbursement of Interest/Commission
This query is : Resolved
01 May 2010
Sir, i have a doubt which i will convey through the following example:
Suppose A Ltd. gives L/C(Letter of Credit) to B Ltd against purchase of goods. The commission(Rs 1,00,000) paid by A Ltd. to bank issuing L/C is reimbursed by B Ltd. to A Ltd. on the basis of Debit Note given by A Ltd. to B Ltd. Now does TDS Liability arise for B Ltd. for reimbursing commission to A Ltd???? Entry in B Ltd.'s books-
Commission A/C 1,00,000
To A Ltd. 1,00,000
(Being L/C commission reimbursed)
Suppose A Ltd. gives L/C(Letter of Credit) to B Ltd against purchase of goods. The commission(Rs 1,00,000) paid by A Ltd. to bank issuing L/C is reimbursed by B Ltd. to A Ltd. on the basis of Debit Note given by A Ltd. to B Ltd. Now does TDS Liability arise for B Ltd. for reimbursing commission to A Ltd???? Entry in B Ltd.'s books-
Commission A/C 1,00,000
To A Ltd. 1,00,000
(Being L/C commission reimbursed)
01 May 2010
B LTD WILL DEDUCTS TDS FROM A LTD.
CA Ashok Kumar Sahu
(Expert)
01 May 2010
TDS APPLICABLE ON COMMISSION PAYMENT,
B LTD DEDUCT TDS TO A LTD
B LTD DEDUCT TDS TO A LTD
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