Our company have office on lease that office share with another “ X “ pvt Ltd co. we have paid full Rent to landlord through Cheque. ( 30,000/- Less Tds Rs.3,000/- pm )
Other hand we raised debit note on X co Rs.20, 000/- without any tax they make payment to us after deducted Tds pm.
I have 2 ?
1) Whether it is Reimbursement?
2) Tds deduction is correct ?
It is just reimbusment of expenditure ......... In my opinion you are just require to reverse the entry to the extant of amount recived by you i.e. Rent expence A/c or alternativly we can treat it as an income also........ and we can claim TDS credit there.
any of the policy can be followed ..... i think there is no such specific guidline on this .....therefor choose any one out of this and disclose the same in notes to A/c
Regards
Madhusudan Kabra
CAclubindia
