Tds on reimbursement of expenses u/s 194j

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Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2012 Can anyone please confirm me that whether TDS is to be deducted u/s 194J on reimbursement of expenses claimed by professionals, especially in light of Q.No. 30 of CBDT Circular No. 715 dated 08-08-1995.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 January 2012 If separate bill is provided for reimbursement then TDS not required to be deducted but if consolidated bill is given the TDS to be deducted on Total Bill Amount.

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2012 tds on reimbursement

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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27 July 2025 Regarding **TDS on reimbursement of expenses under Section 194J**, here’s the standard interpretation:

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### Key points:

1. **Section 194J** applies to payments for **professional fees**, technical services, royalty, etc.

2. **If the professional submits a consolidated bill including professional fees + reimbursement of expenses**, TDS is to be deducted on the **total amount** (i.e., fees + reimbursement).

3. **If the professional submits separate bills/invoices**, one for professional fees and another for reimbursement of expenses, then:

* TDS under Section 194J is deducted **only on the professional fees portion**.
* No TDS is deducted on the **reimbursement amount** as it is a mere recovery of expenses incurred on your behalf.

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### Reference to CBDT Circular No. 715 dated 08-08-1995 (Q.No.30):

* The Circular clarifies that TDS is required on the **fees component**, and **not on the reimbursement component if billed separately**.

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### Summary:

| Situation | TDS under Section 194J? |
| ----------------------------------------------- | --------------------------------- |
| Single consolidated bill (fees + reimbursement) | TDS on **total bill amount** |
| Separate bills for fees and reimbursement | TDS on **professional fees only** |
| Reimbursement bill with no service/fee | No TDS |

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If you want, I can help you draft a sample journal entry or TDS deduction statement for these cases. Would you like that?

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