dear mr.reddy,

I think,  A has to pay an amount ie., after deducting tds and should show in A 
books as advance paid to B. 

and TDS: A has to pay TDS on behalf of B and show in A books as advance .

thankng you
srinivasulu k

On Sun, 05 Oct 2008 CA Y Kondal Reddy wrote :
>Dear Prasenjit Ji,
>
>The Query is about TDS not about Service Tax.
>
>Thanks for your reply.
>
>Pleae cite some sec. reference.
>
>Regards,
>
>CA Y Kondal Reddy
>   ----- Original Message -----
>   From: prasenjit sengupta
>   To: [email protected]
>   Sent: Sunday, October 05, 2008 8:10 AM
>   Subject: Re: International taxation
>
>
>   Hi,
>
>   Company B is a separate entity
>
>   Its registered office is overseas
>
>   the incorporation expense related to consulting $2500 would be relected in 
> B's books. A is paying an advance and would surely be reimbursed by B
>
>   Hence no service tax .
>
>   CA Kondal Reddy Yeldanda <[EMAIL PROTECTED]> wrote:
>     Hi all,
>
>     Please resolve my query.
>
>
>
>     Company A (holding Co) incorpoarated Company B (subsidiary WOS) in 
> overseas.
>
>     THe Incorporation charges of 2500 $ payable.
>
>     Company A shall pay 2500 $ to consultants overseas.
>
>     problem is Whether company A needs to do TDS on above payment.
>
>     Regards,
>
>     CA Y Kondal Reddy
>
>
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