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Tds on testing & inspection charges paid by party

TDS 2168 views 2 replies

Hello

Is TDS applicable on the Amount paid for testing & Inspection Charges debited by Party.

For Example: X ordered Y for a particular Material along with 3rd Party Inspection Certificate.

Y got the material inspected and paid Rs.200000/- as Testing & Inspection charges to Z and charged the same to X.

So Who is liable to Deduct TDS on this 200000/-?

thank you for your replies..

 

Replies (2)

If Z has raised the bill in the name of Y, then Y will have to deduct TDS while making payment to Z. And if Y forward the bill to X, the X will reimburse to Y without deducting TDS.

Wait for more replies.

Even i was thinking the same... then the example of CHA came in my mind.. where the CHA raises a bill and also adds some of the reimbursement expensed which CHA has paid on behalf ... and normally all those reimbursement bill are raised on consignee/consignor name .. but still no TDS is  deducted by consignee/consignor on it since the payment was made by CHA.

Or consignee / consignor are liable to deduct TDS on such amount event though CHA has paid for it..


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