194c- payment made for reimbursement of expenses.
This query is : Resolved
Natasha Agrawal
(Querist)
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.
CA R SEETHARAMAN
(Expert)
09 January 2015
only on service charges deduct TDS, for reimbursement TDS not applicable.
Message likes :
1 times
09 January 2015
Since it is seperately shown then tds only service charges and not on reimbursement of exp.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- IMS (import of goods) ITC related
- Capital Gains Tax on Inherited Mutual Fund
- Royalty payments to the Mining Department for procurement of murum - GST input
- Gift to nri relatives residing in usa
- Applicability of tax on invoice
- Ito add credit side of bank
- Employee secondment
- GSTR9 Annual Return
- LLP audit and disclosure
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
