| |
Hi All,
I am working in a P & G Distributor (Pvt. Limited Co.) Our Purchase includes goods purchase of Direct Marketing Sales (goods for the purpose of house to house Sale) and the sale includes the Sale of Direct Marketing Goods. We had agreement with some of the local Agencies, the agencies take our goods and sale; the agencies use to raise bill in our name of the company on monthly basis and same same amount we get back from P & G Limited as claim for Expenses.
The Accountants here passed some entries like-
Refundable Claim A/c...........................Dr
To Direct Marketing Agencies (Creditors)
and at the time of Payment to the Party
DM Agencies A/c......................................Dr
To Bank
in my view there should be TDS under Section 194C on payment to DM Agencies and before booking bill entry of Expenses the booking claim and the payment to party i believe wrong
My Senior Said that there shall be no tds matter because it is claimable/reimbusable
Please clear my doubt
Thanking you
Regards
Ajeet Singh
CMA Inter
Kolkata
Email ID-ajeetsinghrayat@gmail.com |
|
| |
Dear ajeet,
Tds is liable to be deducted only if that amount increase the income of receiver. In your case the amount paid by you is mere reimbursement of expenses which doesnt increase the income of the receiptent.
Hence tds is not liable to be deducted.
There are plenty of decided case laws in support of this
case of query contact me
Gaurav Mittal
9971312299
Mittalgaurav05@gmail.com |
|
