Tds on amt reimbursed for participation in exhibition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2013 Our company reimbursed the 25% amount for participation in exhibition held in another city to our debtor.

The original invoice for participation is in our debtor's name and the debtor has in turn raised debit note of 25% of the amount.

Now is TDS required to be deducted on it and it would be covered in which section?

CA Krunal

CA Krunal (Expert)
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25 April 2013 It all depends on purpose of reimbursement.

Whether such reimbursement is to support your customer financially for sales promotion activity done ? then no TDS is applicable.

However if its your share of participation then tds U/s.194C is applicable.