Expense made by service providers being reimbursed back to service provider attracts TDS ? If yes at what rate ? We are into consultation services wherein we have to make lot of payments to various agencies for and on behalf of our clients, we we make a practise of geting payment done by client themselves it is not feasible due to time and distance factors.
Under such circumstances, we are making payment on their behalf and them claiming it by raising Debit Note. In such situation should our client deduct TDS on the payment made by them vide Debit Note only ? If Yes at what rate ? If there any way to stop getting TDS Deduction, as it creates working capital crisis.
CAclubindia
