Applicablity of TDS on reimbursement of Transportation char
This query is : Resolved
23 April 2008
We purchased material from Mr X, as per purchase order commited that reimburse the transportation charges by production of LR/RR/Transport copy. The problem here is the reimbursement claimer is not a transporter, he diducted TDS from transporter as per IT norms, here the problem is shell we diduct TDS on payment made by me to supplier. URGENT
Regds
B.V.K.Nageswara Rao
Ph: 099891 57666
Email: nageswararao.bommakanti@ril.com
Regds
B.V.K.Nageswara Rao
Ph: 099891 57666
Email: nageswararao.bommakanti@ril.com
23 April 2008
TDS is not applicable for the Reimbursement of expenses, out of pocket expenses.
23 April 2008
Dear sri Nageswara Rao Garu,
The delhi bench of ITAT in ito vs.dr.willmarschewabe india (p) Ltd. held that reimbursement of expenses for which bills are raised separately,did not attract TDS.
Even CBDT held same view that if a separate bill is given for reimbursing out of pocket exp.,then reibursemenr of exp. is not subject to tds.
SO IN CASE YOUR SUPPLIER CLAIMED REIMBURSEMENT OF EXP. SEPARATELY IN A SEPARATE BILL, THEN YOU ARE NOT LIABLE TO DEDUCT TDS ON REIMBURSEMENT OF OUT OF POCKET EXP.
AS FAR AS YOUR ORIGINAL PURCHASE OF MATERIAL IS CONCERNED, IT DOES NOT ANY WAY ATTRACT TDS. SO I DO NOT SEE ANY NEED ON YOUR PART TO DEDUCT TDS.
THE OTHER PARTY WHO DEDUCTED TDS FROM THE TRANSPORTER IS UNDER STATUTORY OBLIGATION TO DEPOSIT THE TDS DEDUCTED BY HIM AND ALSO TO ISSUE TDS CERT. TO THE TRANSPORER BESIDES LIABILTY TO FILE QRTRLY. AND ANNUAL TDS RETURNS.
R.V.RAO
The delhi bench of ITAT in ito vs.dr.willmarschewabe india (p) Ltd. held that reimbursement of expenses for which bills are raised separately,did not attract TDS.
Even CBDT held same view that if a separate bill is given for reimbursing out of pocket exp.,then reibursemenr of exp. is not subject to tds.
SO IN CASE YOUR SUPPLIER CLAIMED REIMBURSEMENT OF EXP. SEPARATELY IN A SEPARATE BILL, THEN YOU ARE NOT LIABLE TO DEDUCT TDS ON REIMBURSEMENT OF OUT OF POCKET EXP.
AS FAR AS YOUR ORIGINAL PURCHASE OF MATERIAL IS CONCERNED, IT DOES NOT ANY WAY ATTRACT TDS. SO I DO NOT SEE ANY NEED ON YOUR PART TO DEDUCT TDS.
THE OTHER PARTY WHO DEDUCTED TDS FROM THE TRANSPORTER IS UNDER STATUTORY OBLIGATION TO DEPOSIT THE TDS DEDUCTED BY HIM AND ALSO TO ISSUE TDS CERT. TO THE TRANSPORER BESIDES LIABILTY TO FILE QRTRLY. AND ANNUAL TDS RETURNS.
R.V.RAO
24 April 2008
Yes. I do agree with Mr Rao
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
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
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
