I have doubt about Situation 2 answer, 

Is B ltd. need to Deduct TDS on Service Tax ( coz its expense reimbursement) ? 
if Yes, pls clarify.

Thanks in advance

Kishor Pachkude
  ----- Original Message ----- 
  From: deepak pahuja 
  To: [email protected] 
  Sent: 20-11-2008 11:00
  Subject: Re: TDS ON REIMBURSEMENT OF EXPENSES


  Situation 1: B Ltd. will not deduct TDS on payment of Debit Note. B Ltd. 
should deduct TDS on payment of Rent to X Ltd. made by A Ltd. on behalf of B 
Ltd.


  Situation 2: B Ltd. will not deduct TDS on payment of Debit Note instead B 
Ltd will deduct TDS on Service Charges of Rs. 2 Lakh only.









  On Thu, Nov 20, 2008 at 10:34 AM, K.Sankarasubramanian (Finance/TVS-E) 
<[EMAIL PROTECTED]> wrote:

    Pl let us know what is final position on whether TDS to be done on the 
claims for reimbursement of expenses as follows:



    Situation 1 : 

      a.. A Ltd pays Rs 20 lacs Rent to X Ltd – on behalf of B Ltd due to funds 
constraints of B Ltd.. 
      b.. A Ltd  raises Debit Note on B Ltd for rent paid expenses 
reimbursement of the same Rs 20 Lacs by attaching all the required proof 
      c.. Question is whether B Ltd shall deduct TDS on this debit note payment 
to A Ltd 


    Situation 2 : 



      a.. A Ltd pays Rs 20 lacs Rent to X Ltd – on behalf of B Ltd due to funds 
constraints of B Ltd.. 
      b.. A Ltd raises Debit Note on B Ltd for rent paid expenses reimbursement 
of the same Rs 22 Lacs by attaching all the required proof. Rs 20 lacs for rent 
and Rs 2 lacs as Service charges 
      c.. Question is whether B Ltd shall deduct TDS on this debit note payment 
to A Ltd 


    Pl clarify



    KSS/20.11.2008











          K Sankarasubramanian 
         Taking IT to the heart of India
         
          Senior Manager - Finance
          TVS Electronics Limited
          DP,34 South Phase,
          Industrial Estate, Guindy,
          Chennai 600 032. India.
         
         Tel : +91-44-22321166
          Fax : +91-44-22327577
          Mob : +91-98400 93176
          Mail : [EMAIL PROTECTED]
          Web : www.tvs-e.in
         


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  -- 
  Thanks & Regards.
  CA Deepak Pahuja

  Mobile: 9215176462


  

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