TDS u/s 194C

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This query is : Resolved

Manoj Kumar Karna (Querist)

30 April 2010 Our clients is proprietor of two firms.I would like to know that, transaction made between two firm will covered under TDS provision or not. its my veiw that TDS should not be apply becuase Prop. is same in both the firm. early reply will be appreciated.

Aditya Maheshwari

Aditya Maheshwari (Expert)

30 April 2010 One person cannot make profits from oneself and likewise one cannot deduct TDS on himself.

Moreover so there is no expense in the real sense in the hands of the assessee as the same person is hsowing the income as well as the expense

Manoj Kumar Karna

Manoj Kumar Karna (Querist)

30 April 2010 Thanks you Mr.Aditya Jee for quick response. But one doubt in mind that, if one firm service has been using by second firm cleints and second firm invoice to clinet in that what will be implecation .

Aditya Maheshwari

Aditya Maheshwari (Expert)

30 April 2010 Whichever firm has been prvoding the service should book the income ideally. If there is some difference in the same that service provided by one firm is billed in other then also there should not be any problem as long as bill is being raised on the cleint as income of the assessee will remain same though it is preferable that the firm has been prvoding the service should book the income.