In respect of tds from reimbursement of exp.

This query is : Open

cvmashru (Querist)
Follow

28 December 2011 One of my client is engaged in the business of export trading. He made export from kandala port. For this purpose my client appointed clearing & forwarding agent who made some expenses on behalf of my client at port. An agent issued debit note in respect of clearing & forwarding expenses and raised the bill for his charges. My client made TDS from the payment made to an agent.My client pays reimbursement of expenses simply. In this situation my questin is whether is it necessary to made TDS from the payment of reimbursement of expenses ?

Please give judgements or Board Circular in support of your answer

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

28 December 2011 If the C&F agent submits a separate bill for the reimbursement of expenses, then TDS is not required to be deducted on such payment.

If however, the agent submits a consolidated bill, TDS will be deducted on the total bill amount.

It seems that the agent is issuing a debit note to your client for the reimbursement of expenses.

In such a case, TDS is not required to be deducted on reimbursement of expenses

cvmashru

cvmashru (Querist)
Follow

28 December 2011 Please give few judgements or Board Circular in response to your answer.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now