Tds on reimburesement of advertisment exp

yes TDS u/d 194C  @ 2%

I am Agree with Pooja Agarwal

2% is for corporate and 1 % for individuals and HUF

but there is no contract between our company & Mahindra or Hero

Under section 194C, the tax is to be deducted when a contract was entered into for carrying

out any work in pursuance of a contract between the contractor and the entities mentioned in

sub-section (1) of section 194C. In the present case, there was no contract between the

assessee and the co, to carry out any work. On the other hand it can be as a case of reimbursement of expenses..in case of reimbursement,there is actually no income in the hands of recepient..

hence if we go by this no TDS has to be deducted..

agree with Pooja Agarwal