18 April 2012
WHAT WILL BE POSITION IF PAYMENTS ARE MADE BY CREDIT CARD - (GIVEN TO AUTHORISED SIGNATORY , SENIOR OFFICORS FOR OFFICIAL EXPENSES)
IF PAYMENT IS MADE ON THE SPOT AND BILLS ARE RECEIVED LATER. WILL IT MAKE DIFFERENCE ON TYPE OF EXPENSE INCURRED FOR BOARDING & LODGING OR FOR SUBSCRIPTION OR VEHICLE HIRE CHARGES , OR ETC
19 April 2012
Dear Divya, Kindly get it verified whether the company has taken any resolution for allowing the authorised signatory to spend money through credit card provided by the company. If yes then it is yes the authorised signatory can spend the amount for boarding and lodging. One thing to be noted is that the total expenses should not consists of hard drinks which is not permitted.
Yes you can book the expenses on the day the expenditure has been incurred and the bill can come after few days. Once the bill comes then it is to be attached with the voucher.
19 April 2012
yes it has been approved, and expenses are incurred by credit card and bill is given by employee later and tds is not deducted on the same. thanx but my confusion is on tds, whether tds will be deducted
19 April 2012
In case of lodging & boarding expenses at irregular intervals need not require TDS and if provisions of sec. 194I are attracted, than at the time of making payment by credit card, either amount is to be deducted from the bill or separate debit note for tds amount may be raised. As in the most of the cases of payment through credit card, TDS applicability is not required.
19 April 2012
Sec.194 I states that payment made by person other than individual and HUF for hotel or accommodation taken on regular basis will be in the nature of rent and TDS is to be deducted u/s 194I i.e. rent of Rs.180000/- p.a., hence in case of payment of Rs.50000/- need not require TDS. For other services, if particular service falls under the provisions of TDS, it is to deducted otherwise not. In case of taxi hire charges and subscription I think no need of tds if payment is made by credit card as it again not on regular basis.
19 April 2012
u r nt getting my point... staying at hotels is not regular , on figure of 50000 , if tds applicable than need to be deducted as per 194c and also for if veicle hire charges exceed threshold limit..than
19 April 2012
In that case credit card may be swept by bill amount less tds as per applicable rates. If regular account is maintained with particular hotel or vehicle hire agency, debit note of tds may be raised to service provider and adjusted from next bills.
20 April 2012
If the Payment is made against lodging & Bording charge of Individual & Bill in the name of individual then there is no liability to deduct the TDS at the time of making payment, However if the bill raised in the name of the company & payment made through credit card issued in the name of the company then liability of TDS is arises.
CAclubindia
