Ad-Free CAclubindia and daily updates on your mobile. Subscribe Now!

Tds on reimbursement charges

sujin (accounts executive) (219 Points)

20 January 2023

dear expert,
I received bill from training consultant for given a training to our employees they are charged some amount for this training to us...i would like to know whether tds Applicable for they reimbursement charge like cab courier etc

Reply
Follow
Share

4 Replies

JJJ (Need help) (673 Points)
Replied 20 January 2023

No there is no need to include the reimbursement amount in the TDS calculation.

Deduct TDS only on the expense related to the training itself (ie the service component).

Upgrade to CAclubindia Pro. Subscribe Now!

Manish (CA) (1109 Points)
Replied 20 January 2023

If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount.

If separate bills -
1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R.
2. Bills of expenses to reimburse are in your company's name - no TDS

JJJ (Need help) (673 Points)
Replied 20 January 2023

Originally posted by : Manish
	If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount. If separate bills - 1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R. 2. Bills of expenses to reimburse are in your company's name - no TDS

Sorry but that is incorrect. Lazy auditors keep making this claim but there is no rule that requires the entire invoice to be subject to tds.

Manish (CA) (1109 Points)
Replied 20 January 2023

Originally posted by : JJJ
	Originally posted by : Manish If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount. If separate bills - 1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R. 2. Bills of expenses to reimburse are in your company's name - no TDS Sorry but that is incorrect. Lazy auditors keep making this claim but there is no rule that requires the entire invoice to be subject to tds.