Tds

This query is : Resolved 

14 September 2011 Sir,

Whether reimbursement of expenses paid to employees is liable for TDS. As it is also an expenses routed through other media and debited to our profit and loss A/c

thank you

14 September 2011 Reimbursement of expenses paid to employee is not liable for TDS if expenses are incurred for the purpose of business of the employer.

14 September 2011
Reimbursement of expenses is not a income it is paid to employee for business expense so it is not taxable.

Abhishek Ranjan Singh
ARS Solution
email2ars@gmail.com
+91 9022838615

15 September 2011 Sir

What if we instruct our employee to pay technical fees of Rs.120000 to xyz, he pays on our behalf. Now company reimburses the amount to employee. Now is it liable for TDS.

15 September 2011 Yes, it's liable for TDS, is not a re-imbursement to the employee to his business expense rather an expense to Company and income to the Professional providing technical services to the Company.


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