TDS 194 R

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This discussion clarifies the applicability of TDS Section 194R to travel reimbursements. A proprietor received £40,000 monthly for visiting customers to market a private limited company's products. The consensus is that Section 194R is not applicable in this scenario because the reimbursement is for actual travel expenses and not an additional incentive or benefit provided by the company.

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Querist)

06 July 2022 Dear Sir,

One Proprietor issued the Travelling Reimbursement to one pvt ltd company value of Rs.40,000/- every month for visit to Pvt Ltd Customers for marketing purposes, he is just market a Pvt Ltd Company products by visiting to various customers, in this case 194 R is applicable to Proprietor, company has to deduct the TDS to him @ 10%, pls clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 July 2022 194R not applicable in this case.

CA Puja Sharma

CA Puja Sharma (Expert)

07 July 2022 Yes, 194R is not applicable here because he is issuing the travel reimbursement bill.
He is not getting any additional incentive out of that.

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