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Tds

Dixita panchal (Student) (211 Points)

10 October 2015

Whether tds on reImbursable expenses need to deduct? We have made repairing payment on behalf of our client for rs.50000

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9 Replies

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 10 October 2015

No tds need not be deducted on reimbursable expense.

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 10 October 2015

It depends dear...This is not called as reimbursement expenses.. TDS should be deducted on this in mah view because u r paying of repairing expenses...

Reimbursement expenses will be the amount you claims from your party.. Tds will not apply on that

but as the payment is made to third party , tds will be applicable in mah view...!!

lokshkumar (article) (25 Points)
Replied 10 October 2015

AGREE WITH CA ANKIT.

Dixita panchal (Student) (211 Points)
Replied 10 October 2015

Ya the amount will be received in next month then whether we need to deduct tds or not? And if yes then how as we dont have TAN reg.plz rly ASAP

JAGANATHAN R ACMA, SAP(Fi-Co) (Manager Accounts and Finance) (915 Points)
Replied 10 October 2015

first we have to know the reimbursement means employee's expenses travelling, food , telephone etc., those items if employee name mention the all bill the TDS is not applicable.

and the repair expenses which is belongs to company and if book the co.,account's P&L the TDS is applicable as per the IT act

RAHULSMITTAL (Partner, V Mittal & Co) (252 Points)
Replied 10 October 2015

If repairing is done by your company, then do deduct TDS If you are charging amount above the repairing bill, then deduct TDS If you are asking for same amount with copy of original bill attached for the repairs, then no need to deduct TDS. asking for reimbursement of expense is not an expense or services, it is basically in the nature of indemnification.

Dixita panchal (Student) (211 Points)
Replied 12 October 2015

Still confusion is there!!! I m specifying real situation: Eg.our client name Magnum irrilink pvt ltd. Situated at gurgaon covered under tax audit ,some repairing work has been done at their premise for rs.50000, AND bill is paid by M/s. ABC & Co. Which will received at later from Magmum ltd. So , now que is that whether ABC is liable to deduct tds?

Ketan C. Radia (Accountant) (21 Points)
Replied 13 October 2015

as per my opinion TDS is applicable, if you are paying this amount in one single payment, but if you are paying it in two different payment mode and total amount of bill is not exceeding Rs. 75,000/- than no need to deduct TDS