Our Company is Receiving Invoice for Business Support Service from one of our Group Company XYZ ( Provide management service to all Group Cos) on which ST is also charged. The ST Descripttion provides for Expenses incurred on behalf as per details attached. A statement showing break up of total expenses which is apportioned on a fixed % to all group companies including us is also available . Whether TDS applicable on the same?
Can it be considered as pure reimbursement of service?
The Expenses apportioned includes even salary, PF contribution of Employees, Electricity, Depreciation, Loss on sale of asset etc of XYZ Co. (ie Total P&L Expense is apportioned to Group Companies). They are of view that it is purely reimbursement and TDS not applicable.
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