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TDS liability

27 September 2007

Hi!

please clarify if we incurre some exp.on behalf of our debtor and claim the same amount through debit note . Is there any tds applicability to deduct tds by them and make the payment to us after ded.tds

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7 Replies

Prakash Popat (3134 Points)
Replied 27 September 2007

Depend upon nature of Expenditure.

Neeta Gupta (83 Points)
Replied 27 September 2007

IF IT IS REIMB.OF TELCOM COST

Prakash Popat (3134 Points)
Replied 27 September 2007

no tds.

Ravikumar.G (Consultant) (18525 Points)
Replied 27 September 2007

TDS will attract when customers making payments along with their regular bills. If they make payment separately TDS may not attract, but their auditors will quetion and disallow their expenditure so TDS will attaract.

CA. RAMESH KUMAR (PRACTICING CHARTERED ACCOUNTAN) (38 Points)
Replied 30 September 2007

it totally depends on the nature of expenditure if it is one which attracts the provisions of TDS then definetely ur debtor will deduct ur tds irrespective of whether u are charging in the invoice iteself or seperately by debit note. it is sililar to paying freight on ur debtors behalf the first liability of tds is urs but if u didnt deduct the tds and include the amount of freight in ur invoice then ur debtor will deduct the tds on freight. REimbursement of Telecom Cost will not attract TDS.