Tds

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ARJUN ASHOK

ARJUN ASHOK (Querist)
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22 January 2014 if the service amount is Rs.30,000/-, will tax is to be deducted?

@VaibhavJ

@VaibhavJ (Expert)
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22 January 2014 Hi

Can you mention nature of payment too.

Thx

ARJUN ASHOK

ARJUN ASHOK (Querist)
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22 January 2014 194J. Professional Fees & Technical Services. Rs.30,000/- is the only payment made in the P.Y

@VaibhavJ

@VaibhavJ (Expert)
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22 January 2014 Hi

If it does not exceed 30K then no tax to be deducted.

Thx

ARJUN ASHOK

ARJUN ASHOK (Querist)
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22 January 2014 sir,
exp incurred in connection with rendering the service like Travelling exp, food exp,etc.. is paid in excess of this 30,000, are we liable to deduct TDS?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Great question! Here’s how it works:

* **TDS under Section 194J** applies on payments for professional fees, technical services, etc.
* The **threshold limit is Rs. 30,000 per financial year per deductee** for the total payments liable to TDS.
* **Only the actual service fee amount** (like professional fees or technical service charges) counts for the threshold.

Now, for expenses like **traveling, food, or other reimbursements**:

* If these are **reimbursements** to the same person (deductee), and they are genuine expenses incurred on behalf of the payer, **usually TDS is not deducted on these reimbursements**, *provided they are supported by bills and not marked up*.
* However, **if these expenses are paid as part of the fee or without proper documentation, they may be treated as part of the service fee**, and then count towards the threshold limit.
* So if the **actual professional fees + any non-reimbursed expenses exceed Rs. 30,000**, then TDS should be deducted on the entire amount (excluding pure reimbursements).

### In short:

* **Reimbursements with proper bills = no TDS.**
* **Payments towards services exceeding Rs. 30,000 = TDS applicable.**

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