Reimbersment expenses

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This query is : Resolved

Ashish Sharma (Querist)

19 March 2014 Dear Expert,

We are providing event management services for which we billed to our client for our services and includes expenses done for providing services as pure agent. Now we want to know whether reimbursement expenses charged by us in invoice will come in income side or not. whether total bill including reimbursement charges will be calculated as our turnover for Tax Audit.

Eg. Reimbursement charges 9,00,000/- and our commission 1,00,000/- Total bill 10,00,000/- Whether 9,00,000/- recovered has to shoe in income side and whether 10,00,000/- total amount to be count for tax audit or 1,00,000/- only

CA Deven

CA Deven (Expert)

19 March 2014 NO ONLY RS 1,00,000 WILL BE CONSIDERED AS YOUR INCOME

Ashish Sharma

Ashish Sharma (Querist)

19 March 2014 thanks but I need more clarity whether I have to show this 900000/- in Income side of Profit and loss if not then where it will be booked in accounts .

CA Deven

CA Deven (Expert)

19 March 2014 NO REIMBURSEMENT OF EXP. IS NOT TREATED AS INCOME ...NO NEED TO SHOW IN THE BOOKS OF ACCOUNTS ALSO AS IT WILL BE NIL AT THE YEAR END

CA Deven

CA Deven (Expert)

19 March 2014 FURTHER FOR YOUR INFORMATION NO TDS IS APPLIED ON REIMBURSEMENT OF EXP.. DONT WORRY

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