TDS other than salary

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CPA Partha Sengupta (Querist)

11 October 2008
Hi all,

Kindly resolve the following query:

A Company deducts tax from source (TDS) where applicable as per law, at the time of making payment to parties/vendor. The same company also gives advance to some of its employees in order to carry out project activities. Here, the project staff after taking the advance executes the project work and thereafter submits all the bills for settlement of advance. It has been observed that some types of payment made by the project staffs attract TDS. So, in these cases the company is not directly dealing with the vendors. Now, my question is ----
Can the project staff deduct TDS on behalf of the company like the company is deducting tax while paying directly to the vendor?

Please specify the related provisions of I.T Act if applicable to above query.

Thanks in advance.

Jitender

Jitender (Expert)

11 October 2008 yes , project staff can deduct tds becz they r working on behalf of co & not individually.

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)

12 October 2008 Project staff would deduct TDS under the similar provisions of the IT Act.

Apart from the deduction the company needs to have a robust system of capturing the deduction through prompt advance settlement by the staff to adhere to the time lines of remittance of the deducted TDS

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