Tds on sharing of expenses between group concerns

I have a group of conerns which incur expenditures benefical to the group as a whole and whenever payments of such expenditures happen the concern which effects the payments correctly deducts tDS and complies with all statutory requirements and then shares the expenditure between the group in an agreed ratio.

My query is : Is it necessasary for the Concern which absorbs its portion of such shared expenses to again deduct TDS on the concern which raises a debit for the purpose of sharing of group expenses ?

For eg. A, B, C and D are group concerns. A incurs common expenses, deducts TDS while booking the expense and complies with all requirements and then shares the expenses with B, C  and D.  Is it obligatory on the part of B, C and D to deduct TDS  on the credit given in their books for A in respect of the expenses so shared  ?

If yes, Will this not amount to the same expenses suffering TDS twice, which is not the intention of the section ?

Is there any circular or notification giving exemption to such transactions ?

 

Pl throw light on the subject.

Sivasailam

 

 

Replies (2)
Common expenses like taking a software license to be installed to all of your branches etc will not be liable for tds when expenses booked against respective branch. Others depend on facts of case.

Mr Kulakarni,

This is not sharing of expenses between branches but it is sharing between two or three different companies or firms.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details