TDS should not be deducted on reimbursement expenses, is this applicable only when the party provides seperate bill or debit note for the same. If it is included in the bill, will the whole bill be considered for TDS deduction. Suppose bill no. xyz includes labour charges + reimbursement of exps (40,000/- + 20,000/- respectively) then the whole bill amount will be considered for TDS? i.e. Rs. 60,000/-. Pls help.
07 January 2010
TDS should be deducted on the labour charges Rs.40000/- and not on the whole bill. Reimbursement of expenses will not be included while calculating TDS
07 January 2010
Hello Friends, i recently read the masters guide to income tax act in which it states that 194C & 194J are for the sum paid, if the bill includes reimbursement expenses then it will become taxable alongwith the other components for the bill for 194C & 194J, but if a seperate bill or credit note is provided then there will be no question of deducting TDS on it
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