TaxTMI 
TaxTMI 
Reimbursement of TDS
X X X X Extracts X X X X
X X X X Extracts X X X X
....eimbursement of TDS<br> Query (Issue) Started By: - Siraj Shaikh Dated:- 14-6-2012 Last Reply Date:- 16-6-2012 Income Tax<br>Got 3 Replies<br>Income Tax<br>There is a labour contractor charging Rs. 12....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,000 per month for some service. The company has agreed to bear the TDS amount. The Bill submitted by the contractor is 12, 240 inclusive of TDS. Hence, the company deducts 244.80 from 12,240 and pays....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the net. IS IT OK from Income Tax Point of View. Reply By CS Swati Dodhi: The Reply: Yes, the treatment is correct The tax borne by company becomes income of the contractor,thus tax deducted at 2%....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of 12240 is correct Read section 195A if required. Reply By Narender Singh Negi: The Reply: Labour contractor services is chargable to TDS @2% u/s 194C and TDS will be deducted on credit or paid w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith ever is earlier. So it is OK as per income tax act but contractor income will be increased by Rs.240/- that will have to justify to the department in the case of scrutiny. But at the time of deduc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion contractor have to provide PAN to the company against the deduction of Rs.244.80. Reply By Siraj Shaikh: The Reply: Thanks Swati and Narendra...<br> Discussion Forum - Knowledge Sharing ....