ABC is providing manpower services. they reimburse bills of Conveyance and other expenses. and also Claim 6% Handling charges on total of the above expenses. So should i deduct TDS on only HAndling Charges or the total bill amount.
vaibhav sharma (article Assisstant) (33 Points)
30 March 2015ABC is providing manpower services. they reimburse bills of Conveyance and other expenses. and also Claim 6% Handling charges on total of the above expenses. So should i deduct TDS on only HAndling Charges or the total bill amount.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 30 March 2015
I think reimbursement cannot be deducted out of the bill amount for the purpose of TDS u/s 194C. So you need to deduct tax on the entire value.
vaibhav sharma
(article Assisstant)
(33 Points)
Replied 30 March 2015
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 30 March 2015
Yeah, even then it has to be deducted I think, I have read so.
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 30 March 2015
yes poornima ji is right, you need to deduct tds on full amount...
or you can ask the party for a separate bill regarding these expenses.. then u need not to deduct tds on that...
but if one common bill is given , then tds wil b deducted on full amount
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