194c- payment made for reimbursement of expenses.
This query is : Resolved
09 January 2015
A Clearing and forwarding agent has paid certain expenses on our behalf. He claims the reimbursement of expenses along with his services charges. His bill appears as follows- (example)
1. Service charges- Rs. 500
2. Reimbursement of expenses paid on our behalf- Rs. 500
Total- 1,000.
Now my question is, whether we have to dedct TDS on the aggregate amount or only service charges?
Will TDS be applicable for payment made as reimbursement of his expenses?
I am confused because Sec 194C states "any sum paid" shall be liable for TDS but logically, reimbursement does not form a part of the income of Clg & fwd agent so it should not be subject to TDS. Kindly express your opinion on the matter.
1. Service charges- Rs. 500
2. Reimbursement of expenses paid on our behalf- Rs. 500
Total- 1,000.
Now my question is, whether we have to dedct TDS on the aggregate amount or only service charges?
Will TDS be applicable for payment made as reimbursement of his expenses?
I am confused because Sec 194C states "any sum paid" shall be liable for TDS but logically, reimbursement does not form a part of the income of Clg & fwd agent so it should not be subject to TDS. Kindly express your opinion on the matter.
09 January 2015
only on service charges deduct TDS, for reimbursement TDS not applicable.
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09 January 2015
Since it is seperately shown then tds only service charges and not on reimbursement of exp.
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