Tds on reimbursement of expenses to cfa

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This query is : Resolved

Sabareesh (Querist)

13 March 2014 Our CFA is raising an invoice for his charges and the expenses incurred on behalf of us. The bill is segregate into two columns - Taxable and Non Taxable and all the expenses for which he is providing the bills are shown under non taxable portion (reimbursement). Should we deduct TDS on entire amount or only on the taxable amount?

He is not providing a separate bill but showing under non taxable portion in the bill? Please clarify.

Ganeshbabu K

Ganeshbabu K (Expert)

13 March 2014 You can deduct tds only on taxable portion
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no tds on reimbursement as he have shown it seperately in invoice and also provided original bills paid by him
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Sabareesh

Sabareesh (Querist)

13 March 2014 Thank u sir.

Is there a clause that the reimbursement amount should be shown in a separate bill?

Ganeshbabu K

Ganeshbabu K (Expert)

13 March 2014 So stated in Circular 715 dated 08.08.1995
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See my convo in lawyers club india
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https://www.lawyersclubindia.com/experts/Tds-on-reimbursement-of-charges-392646.asp#.UyGY6fQW11Z
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in my opinion showing seperately in invoice also fine if they provided original bills paid by them

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