194J-clarification on "separate bill" and "consolidated bill
This query is : Resolved
20 December 2010
This is with reference to the query posted here https://www.caclubindia.com/experts/tds-on-reimbursement-of-expenses-u-s-194j-96286.asp by CA Praveen Chopra.
If within an invoice there are two differnt items i.e. training fee -> Rs 1,00,000 in amt column and taxi chrgs -> Rs 4,550 in amt column and thereafter total 1,04,550.
Is this to be considered as "bill separately raised" or "consolidated bill" for the purpose of TDS deduction u/s 194J
If within an invoice there are two differnt items i.e. training fee -> Rs 1,00,000 in amt column and taxi chrgs -> Rs 4,550 in amt column and thereafter total 1,04,550.
Is this to be considered as "bill separately raised" or "consolidated bill" for the purpose of TDS deduction u/s 194J
20 December 2010
In this case, it is to be considered as consolidated bill for the purpose of section 194J.
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20 December 2010
Here there is no seperate bill and TDS need to be deducted on the Gross amount. ie., Rs. 104550.
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20 December 2010
CBDT Circular 715 dated 8/8/1995 says as follows:-
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.
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