TDS Liability

Please see under Experty query (solved) - TDS - 194C-Advt. -

Explained as the main contractor liable to deduct tds and participating company not be liable to deduct tds.

Originally posted by :Sumit Rai Bindlish
"	hi Plz resolve this : A Ltd. is 100% wholly owned subsidiary co. of B Ltd. Expenses of Rs. 100000 paid by B Ltd. on behalf of A Ltd. to contractor after deducting TDS. Accounting System : Books of A Ltd  : Expenses A\c  Dr.   and    Cr.   B Ltd Books of B Ltd : A Ltd. Dr. and Cr. to Contractor  and Cr. to TDS Payable These Expenses are shown in the P&L A\c of A Ltd. So Plz tell me that who is liable for deducting TDS  ( A Ltd. or B Ltd. ) Also tell me Suitable Sections With Thanks & Regards	"

 

if the tds of B company who is the division of A ltd is paid by C ltd who is subsidiary co. of A ltd so is this accepted by law

The Entry in the books of B Ltd will be as under A Ltd Dr. (Net of TDS) Bank a/c Cr. (Net of TDS) (The advise of payment made on behalf of A Ltd by B Ltd will be send to A Ltd with deatil of payment and tds dedcuted theron) The Entry in the books of A Ltd will be as under Contractor Dr (Gross Amount) TDS Payable Cr (TDS Amount) B Ltd Cr (Net of TDS) TDS will be accounted and deposited by A ltd and accordingly file the TDS return.