194J
This query is : Resolved
15 July 2009
If a Chartered Accountant give one bill mentioning the details as below: -
Fees Rs. 10000/-
Reimbursement of Expenses Rs. 1000/-
(Conveyance)
Rs.11,000/-
Serivce Tax Rs. 1,030/-
Total Amount Rs 12,030/-
Query is
On what amount we deduct TDS, since it is one bill whether we deduct TDS on whole amount or after deducting reimbursement part.
Kindly advise
Fees Rs. 10000/-
Reimbursement of Expenses Rs. 1000/-
(Conveyance)
Rs.11,000/-
Serivce Tax Rs. 1,030/-
Total Amount Rs 12,030/-
Query is
On what amount we deduct TDS, since it is one bill whether we deduct TDS on whole amount or after deducting reimbursement part.
Kindly advise
Abhishek Mohta
(Expert)
16 July 2009
Reimbursement of the expenses is not the income of the CA so no TDS should be deducted on that amount. TDS will be deducted on Rs. 11,030/- only. However, if the bill states fees inclusive of reimbursement of expenses and you cant segregate both of them then TDS will be deducted on the full amount.
CA Bosu babu
(Expert)
16 July 2009
hello on reimbursement of conveyance also they have to include.....pls refer Circular no 715 date 08.08.1975....section says any sum paid......so entire amount has to be included for TDS....
taxindiaconnect
(Expert)
16 July 2009
TDS is required to be deducted on the entire amount of the bills including reimbursement and service tax . Please refer to the following clarification issued by CBDT on this matter in circular no715 dated 08/08/1995
Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.
Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.
16 July 2009
I agree with the view of Mr.Bosu and Rajesh Dua.
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