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tds on reimbursement of expenses u/s 194j

This query is : Resolved 

29 November 2008 whether tds is to be deducted u/s 194j on reimbursement of expenses

29 November 2008 As per Circular No. 715 dated 08.08.1995 and as per decision given by Delhi bench of ITAT in the case ITO V. Dr. William Schwabe India (P) Ltd., reimbursement of expenses for which bill is separately raised did not attract the provision of Section 194J.

However if a consolidated bill is raised then the entire amount of bill is subject to TDS. (Professional Service + Expenses)


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