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Tds deducted on behalf

CA.Varalakshmi.M (Manager-Finance) (482 Points)

27 May 2013

Hello All,

X company made payment on behalf of Y for security services availed by Y and security services invoice is in the name of Y. As services are taken by Y , it is Y company obligation to deduct TDS and remit it to Govt. But X company has already deducted TDS and remitted to Govt.

In this case can Y take certificate from X company that Y comp obligation was discharged by X?

Please suggest me, Thanks in Advance.

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4 Replies

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 03 June 2013

Dear Sir

Pls clear X AND Y both the related party or not

Rgds

S.S.RAWAT

CA.Varalakshmi.M (Manager-Finance) (482 Points)
Replied 03 June 2013

No , they are not related parties.

1 Like

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 04 June 2013

Dear Sir

IF I AM RIGHT. In above case X Company Is a security agency and they are providing secuirty service to another also and Y Company is service receiver. As per income tax act 1961 and Sec194 C, "Y Company" is liable to deduct TDS and deposit the same on a/c of Govt.

X Compnay can't deducted TDS on behalf of Y Company ,whenver they are not related party as per AS-18.

In second thing TDS already deposit by X Company after consider the own PAN No/TAN