Tds on service tax reimbursement is allowable ?
ashwath
(Querist) 06 January 2014
This query is : Resolved
Hi Sir,
we and company are sharing service tax @ 50%. when the company reimbursed their share of 50%, they deducted TDS and sent the amount to us. Is it allowable ? second, will it not amount to double taxation ???
Adv.Aiyer VLV
(Expert) 06 January 2014
TDS to be allowed income must be credited. Credit ST to p&l for claiming credit for tds
Tds is collection mechanism. Not double taxation. Tax is based on income
Rajendra K Goyal
(Expert) 06 January 2014
TDS is not double taxation,Tax is levied on Income. Agree with the expert Adv.Aiyer VLV ji.