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.

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.