TDS Related

This query is : Resolved

Nazir (Querist)
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11 August 2009 Hi..

Say there are 3 co.s X, Y & Z X is one co. Y is another co. and Z is Audit firm, Y is the investor in X, if Y paid audit fees of X directly to Z and now they are asking for reimbursement of that fees which they were paid for us. do we need to deduct TDS on that??? if this is the reimbursement, please note that the fee is 20 lacs.

Waiting for your reply.

Nazir

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 August 2009 TDS on audit fees to be deducted at the time of provision. The amount may be even 1 cr the company booking the expense is laible to deduct TDS on the same and not the company actually paying it. Certificate of TDS to be given to the auditor.

Nazir

Nazir (Querist)
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11 August 2009 Thanks.. in this case Y has already deducted TDS and paid to Z (auditor) on the said amount and now we are reimbursing these charges to Y, here do we need to deduct TDS again on this amount???

Nazir

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 August 2009 X should have initially deducted TDS on audit fees provision. No TDS required if just a reimbursement of expenses.

TDS to be deducted by the party who is claiming the expenditure.

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