TDS Deduction in case of 2 Business Partner Companies

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  1. Reman

    Reman New Member

    Hi,
    I provide IT business development services to the clients on behalf of my business partners. I have my own company registered for the same. I take services from my business partners (who have their own companies) and resell it to clients. Together me and my business partners share a percentage of profit margin on every business deal at the back end, for which we have agreements in place. My query is as below:

    1. My company raises invoice to the client and gets TDS deducted. My business partner bills my company for his/her profit share and raises invoice for the same. Do I need to deduct TDS on business partner's invoice as well?

    If yes,
    2. There is one single service provided to client. Can TDS be deducted twice on one single service?

    If no,
    3. Then will it be feasible that I let my business partner bill the client and I bill my business partner so that TDS doesn't get deducted from my company.

    THANKS FOR YOUR RESPONSES IN ADVANCE.
     
  2. Karan Batra

    Karan Batra Well-Known Member

    1. Yes, TDS is required to be deducted
    2. It is being provided by different companies and therefore TDS would be deducted. However, if you think TDS is more than the actual tax liability - you can ask for TDS Refund at the end of the year.
    3. Again there are 2 parties and therefore TDS would be deducted twice.
     
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