TDS
This query is : Resolved
18 June 2009
XYZ Pvt Ltd co., paying every month Building rent Rs. 30000/- and telephone charges, elct. charges & other expenses over all Rs.15000/- to ABC Pvt Ltd co. - then XYZ to be deducted TDS from ABC for rent 22.66% and in which rate TDS to be deducted on reimbursement exp.(as above mentioned expenses -which is not a maintenance or Hire charges)and also which under sec.(Nature of Payment)to be accounted
18 June 2009
Dear Radha
Reimbursement of Expences is not a income of ABC Pvt.Ltd. so no need of deducting TDS on Rs.15000/-
Reimbursement of Expences is not a income of ABC Pvt.Ltd. so no need of deducting TDS on Rs.15000/-
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18 June 2009
Agreed with expert. No need to deduct tax on reimbursement of expenses.
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18 June 2009
agree with the expert
18 June 2009
I do not agree with the this proposition. In case if the reimbursement is being made against the actual bill then only the this proposition holds good. However from the language of the query it seems that the fixed charges are being paid for so called reimbursement of expenditure. Payment of a fixed charge for shall partake the character of rent in such case, accordingly a TDS @ 22.66% would be required to be deducted.
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19 June 2009
reimbursement of electricity,water charges to land loard supported by bills need not deduct tds, other wise 22.66% tds applies
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19 June 2009
Irrespective the claim is actual or ad-hoc, tax needs to be deducted for re-imbursement.
For other charges 194C is applicable.
For other charges 194C is applicable.
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