Payment to beauty advisors

D is liable to deduct the TDS in both case. But x is liable to deduct the TDS on reimbursement if profit margin or any other charges includes in  reimbursement.

First we have to see relation between agent and company whether it is principle to principle relationship or principle to agent.If it is principle to principle relation then D is liable for TDS in both the cases

bt why D should deduct TDS as expenses is claimed by X ltd. and not by D and if D have to deduct TDS how will he claim Expenses from his Income     Originally posted by : Puneet Mittal
	D is liable to deduct the TDS in both case. But x is liable to deduct the TDS on reimbursement if profit margin or any other charges includes in  reimbursement.

 

actualy D is our Distributor who sales our product at some %age of margin.....n wat about tds liability of X ltd? Originally posted by : monika ahuja
	First we have to see relation between agent and company whether it is principle to principle relationship or principle to agent.If it is principle to principle relation then D is liable for TDS in both the cases

 

D will deduct the TDS on payment basis. Than he will realised total amount from X Limited. and x will claimed the expense of that amount.

But if d realised some margin or service charge with the amount of reimbursement than x will also deduct the TDS on the panyment made to D.

Dear Ankit I would suggest a practical application in your case. When "D" makes payment to Beauty Advisor he will deduct TDS on behalf of "X Ltd." The deducted TDS will be deposit on TAN of "X Ltd". And X Ltd. Will considered this amount in their TDS Return. Case:- 2. X Ltd will Paid only the reimbursed amount made by "D" to Beauty Advisor.