TDS on out off pocket expense
This query is : Resolved
CA Jithesh C
(Querist)
18 February 2009
I have an invoice from a professional only for out off pocket expense. He charged service tax as well as FBT reimbursement on this invoice. Whther TDS is required to be deducted or not? If required, on which amount it is to be calculated? Will it make any difference, if the professional raised only one invoice for service charges as well as reimbursement of out off pocket expenses?
K V Subba Rao
(Expert)
18 February 2009
Service Tax: TDS has to be affected on Service Tax part of the Bill (Exemtpion is provided for Svc Tax in case of Rent only)
FBT: (Travelling) Expenses are incurred by Professional.Irrespective of whether the Professional gets reimbursement or not, he (Professional) is responsible to pay FBT. I draw this inference after visiting
https://www.capitalmarket.com/Cmedit/story11-37.asp?SNo=156102
Whether you reimburse FBT or not depends on Terms & Conditions agreed between you and Professional. If you reimburse the Professional of FBT amount, it has to be obviously treated as "any sum paid" to the Professional. So TDS has to be affected on FBT reimbursement to the Professional
FBT: (Travelling) Expenses are incurred by Professional.Irrespective of whether the Professional gets reimbursement or not, he (Professional) is responsible to pay FBT. I draw this inference after visiting
https://www.capitalmarket.com/Cmedit/story11-37.asp?SNo=156102
Whether you reimburse FBT or not depends on Terms & Conditions agreed between you and Professional. If you reimburse the Professional of FBT amount, it has to be obviously treated as "any sum paid" to the Professional. So TDS has to be affected on FBT reimbursement to the Professional
CA Nitin Wadhwani
(Expert)
19 February 2009
TDS has to be deducted even on OPE.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
