Non deduction of TDS on reimbursement of same expenditure

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This query is : Resolved

Nishant (Querist)

11 June 2008 sir,
i want to know regarding non deduction of tds on reimbursement of expenses by a person(IInd party) to another person(original party) who already deducted TDS on same amount and deposited. (for example a subsidiaries paid rent 0f rs 140000/ and deduct tds and deposited and get reimbursement of same amount rs.140000 from holding co. however holding co. not deduct any TDS on such reimbursement)

I need your expert opinion on this metter. please send me supported sec. and legal opinion if any on my e-mail address - canishantchaudhary@gmail.com

thank u

truely

Nishant

S. SRIKANTH

S. SRIKANTH (Expert)

12 June 2008 Reimbursement of expenses will not partake the capacity of original expenses. Moreover from your query it is understood that rental agreement exist only between subsidiary and party. It is covered by 194 I. But it doesnot have any formal agreement of rent and there is no subletting of property to H.Co. Hence the reimbursement does not partake the character of Rent. Hence No deduction of TDS is required.

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