Google India Pvt.Ltd. issues monthly bill in the name of the Director of the company for domain service as the credit card is in the name of the Director. However, the service is used by the company and company reimburse the charges to the Director without deducting any tax. Query is whether company is required to deduct any tax? If yes, then why? Under which section? Is there any circular/notification etc. in support if answer is in affirmation.
I strongly feel that company is not liable to deduct tax because the bill is not in the name of the company even though expense is incurred for the the company.
We need to see the substance over form.
Finally the services are being used by company.
Company has to deduct Tds under Section 194J Technical / Professional services if the bill exceeds 30k per annum
CAclubindia
