TDS on out of pocket expenses of a professional ??

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This query is : Resolved

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This discussion clarifies the Tax Deducted at Source (TDS) rules for professional fees and associated out-of-pocket expenses (like travel and accommodation). Generally, TDS is applicable on the professional fees charged. If out-of-pocket expenses are reimbursed and properly evidenced, TDS might not be required on those specific amounts, especially if they are billed separately. The presence of GST on the invoice is also a factor to consider.

CA Abhishek Singh

CA Abhishek Singh (Querist)
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22 August 2024 Hello everyone,

A ltd has received an invoice from consultant - professional fees 100000, out of pocket expenses-15000 (food, travel & accomodation ) total 115000

He has provided evidence of accomodation.

should we deduct tds on 100000 or 115000

if suppose he issues two seperate invoice one for 100000 and one for reimbursement of OPE then what would be implication on TDS ??

Thanks