Tds on reimbursement

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bharat (Querist)
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04 April 2012 where 'separate' bills are raised for reimbursement by professional,
but not suported by expense bills.
whether TDS should be deducted or not on invoice for reimbursement of expenses.
if tds should be deducted then under which sec. 194j or 194c.
plz provide reference if posible.

thanks

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 April 2012 TDS will not be deducted if the person provids supportings for the same. However, TDS will be deducted @10% u/s 194J if no supportings are provided.

bharat

bharat (Querist)
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05 April 2012 thanks amit..

but there are two separate bill,
1 for professional fees
2 for reimbursement

yet tds hvae to deduct us 194j ???

is there any reference of circular or any thing...

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 If You have supportings in your hand then there is no need to deduct the tax, but if there is no supportings then it will be considered as professional service, Professionals can not be considered as cotractor.
Circular has been issued in this regard for the purpose of definition of "contractor" whereby it is mentioned that professionals are not contractors.
TDS u/s 194J shall be attarcted in this case.Further, IF a CA issues a bill for out of pocket expense then also TDS is deducted u/s 194J only.

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