tds on debit note

satish (Querist) 14 May 2009 This query is : Resolved
Situation 1 :

a.. A Ltd pays Rs 20 lacs Rent to X Ltd – on behalf of B Ltd due to funds
constraints of B Ltd..
b.. A Ltd raises Debit Note on B Ltd for rent paid expenses
reimbursement of the same Rs 20 Lacs by attaching all the required proof
c.. Question is whether B Ltd shall deduct TDS on this debit note payment
to A Ltd

Tell me tds ded.on debit not and service tax inclued on debit note.
Thanks & Regards
Satish

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A V Vishal (Expert) 14 May 2009
Dear Satish,

The amount paid by B Ltd on behalf of X Ltd is to be treated as a loan/advance, B Ltd is not liable to deduct tax unless expressedly instructed by X Ltd to do so, however, X Ltd will be liable for non deduction of TDS.