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TDS liability on Googles bill

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Mohan Kale

404 Points Posted on 02 February 2022

Domain usage service is taken from Google India Pvt.Ltd. for which Google raises bill on monthly basis. Bill is in the name of the Director of the company as the Director pays using his credit card. The company books expenses by crediting the Director and later reimburse to the Director. Query is whether the company is liable to deduct tax on such expenses? If yes or no, please give relevant references.

I strongly feel, company has no liability to deduct tax as the bill is not issued in it's name though the expense is incurred for the company.

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Quick Summary

This discussion explores whether a company is liable to deduct Tax Deducted at Source (TDS) on domain usage services procured from Google India. The service is billed to the company director, who pays via credit card and is subsequently reimbursed by the company. The core question is whether TDS is applicable when the invoice isn't directly in the company's name, despite the expense being for business purposes.