Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

tds

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

vikram

vikram (Querist)
Follow

20 February 2009 is TDS applicable for travelling and lodging expenses for consultants with bills & or without bills.

K V Subba Rao

K V Subba Rao (Expert)
Follow

20 February 2009 The Board has through Circular No.715 dated August 8,1995 clarified that since Section 194J refers to "any sum paid", reimbursement of actual expenses cannot be deducted from the bill and that such reimbursement will also have to be taken into account in deducting tax at source.

However, the issue of whether tax deduction will be attracted where such expenses are claimed through a separate statement stands unclarified by the Board

It is felt that if the expenses are claimed through a separate statement there will be no requirement to deduct tax at source, provided the deductor is satisfied that the expenses claimed as reimbursement are only the actual expenses incurred. If there is an element of profit, that is to say that if the reimbursement is not of actual expenses, tax will have to be deducted at source even if the expenses are claimed through a separate statement

Source: https://www.thehindubusinessline.com/iw/2005/07/03/stories/2005070300331300.htm

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