TDS on out of pocket exp

This query is : Resolved

Manish (Querist)
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01 April 2009 if any vendor on which we are already deducting TDS @2.266% is charging service tax on out of pocket expenses incurred by him.

shall we charge TDS on bill of out of pocket expenses of that vendor?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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01 April 2009 If out f pocket chrges is form part of service provided then you can deduct TDS

CA JAIMIN TRIVEDI

CA JAIMIN TRIVEDI (Expert)
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01 April 2009 Yes, take that as an expense in same head in which you are normally accounting his regular bills.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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01 April 2009 yes i agree with the expert

Manish

Manish (Querist)
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01 April 2009 THANKS TO ALL OF YOU

Laxmi Narayana Sahu

Laxmi Narayana Sahu (Expert)
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01 April 2009 TDS is deductible if any income is paid to any person.Out of Pocket Expenses is in the nature of reimbursement 0f expenses & no income is paid .therefore TDS is not Deductible.

Laxmi Narayana Sahu

Laxmi Narayana Sahu (Expert)
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01 April 2009 TDS is deductible if any income is paid to any person.Out of Pocket Expenses is in the nature of reimbursement 0f expenses & no income is paid .therefore TDS is not Deductible.