TDS attract on this travelling expenses.

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This query is : Resolved

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Query on whether TDS applies on travelling expenses included in service provider invoices without supporting bills. It was clarified that if travel cost is part of overall service invoice, TDS should be deducted on the total service value, and such expenses are not treated separately for TDS purposes.

Marimuthu

Marimuthu (Querist)

10 February 2024 Dear Experts,
1 A company is availing the service from its service providers, who is a GST registered person
2 For the purpose of carrying out this services at various branches of the company, the service provider incurs some travelling expenses.
3 The service provider will not submit any proof for their travelling expenses.
4 Just they will add this amount in their invoices.
5 Whether the TDS will attract on this travelling expenses.

RAJA P M

RAJA P M (Expert)

11 February 2024 Yes, You can deduct TDS.... Generally TDS not applicable for travelling charges. But, the client provide services including travelling charges. so deduct TDS as per service.

Message likes : 1 times

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

04 November 2026 If a service provider includes travelling expenses in their invoice without providing supporting proof or bills, the amount loses its character as a pure reimbursement and becomes part of the composite service fee. Consequently, TDS must be deducted on the total value of the invoice, including the travelling component.

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