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Jul 15 at 07:28 AM

Input tax and TDS on Third rd party vendor

168 Views Last edit Jul 15 at 07:29 AM 2 rev

Dear All,

We have a scenario,

Vendor V1 will supplying service S1 to Company COMP - 100 + GST 18 = 118

Vendor V2 will supplying service S2 to Company COMP - 200 + GST 18 = 236

Vendor V3 - Reimbursement Vendor for Company COMP

services S1 and S2 will be taken by the company COMP from V1 and V2,

V1 will be raising an invoice of 118 including GST on COMP

V2 will be raising an invoice of 236 including GST on COMP

The total amount of 118 + 236 = 354 will be paid to V1 and V2 by V3 on behalf of COMP

V3 will raise a reimbursement PO on COMP for a value of 354 with out any GST.

COMP will be paying the amount 354 to V3.

But in the above case company COMP need to take input credit on the taxes that is 18+36 = 54 on V1 & V2 but its not directly in transaction with them.

How the COMP can take the input tax for the amount as V1 & V2 are raising the invoice on COMP.