TDS on reimbursement of Electrician Salary

[Pradeep Kaushik]

Dear All,

 

I have one query, We have taken one premises on lease rent. Apart from lease Rent,  we are paying salary of electrian who is being provided by lessor. Is there any TDS liability on reimbursement of the Electrician salary.

Secondly, The Electricity Connectioni  is in the  name of lessor, Lessor is paying the bill and we are reimbursing the same amount to lessor, photo copy the bill is being provied to us. Is there any TDS liability.

Please advise.

Regards.

[VIPIN GARG]

Dear Sir,

If you are claiming the electrician  salary in your expense either through adding it in rent or seperately, then YES you are having the liability to deduct TDS and deposite the same to the govt. Because Lessor in that case is just acting as a agent or mediator between you and electrician.

If you are not deducting the tds on electrician salary's amount then it will not going to allow you as expense in your books.

I hope you got the reply for which you were looking. If you have any doubts please feel free to reply me.

Its very nice to reply your query.

Regards,

VIPIN GARG

 

AI Summary

TDS on reimbursement: lessee must deduct tax where lessor acts as agent for electrician salary and utility payments. Where the lessor procures or pays the electrician or the utility and the lessee subsequently reimburses those amounts, the lessor is treated as an agent or intermediary; the lessee must deduct and deposit TDS on the reimbursed sums, and failure to deduct may result in the expense being disallowed in the payer's accounts.