BILL AND PAYMENT IN DIFFERENT NAMES

[S.C. WADHWA]

A Pvt. Ltd. Co. make sales through sales agents. One agent is an individual

and have 10 employees under his employment.

Such agent gives bill in his favour but accepts payment in

bank account of an employee and gives PAN of

such employee for tds.

Whether is it justified to follow.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Mismatch between invoicing and payment may raise TDS and PAN compliance concerns when payments are routed to an employee. A company's sales are effected through an agent who issues invoices in his name but receives payments into an employee's bank account and furnishes that employee's PAN for TDS; the core question is whether routing payments to an employee and using the employee's PAN is justified given the invoice and agency relationship, and no substantive answer is recorded.