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Tds on reimbursement of travel expense

This query is : Resolved 

Dear Sir,

I have received invoice from one vendor regarding reimbursement of Travel expense on which he charge GST.

can you please suggest whether TDS would be deducted on reimbursement expense on which vendor charged GST?

Please Reply urgently with section number and ruling of CBDT if any applicable.

Thanks in advance.

Thanks and regards,

Harshal Raval.

Please get the invoice clearly indicating only reimbursement and asked the party to attach supporting document like train ticket , taxi hire charges to substantiate the value of the bill. Kindly note that invoice value should match with supporting documents. If so TDS need not be deducted.

In case of TDS deducted invoices , TDS to be deducted only for the basic amount and not for the total invoice amount ( basic + GST)

CBDT has clarified through Circular No. 23/2017 that if GST on services has been indicated separately in the invoice, then no tax would be deducted on GST component.

As per my opinion, First of all your vendor should not charge GST on reimbursement expenses. If he does so, to avoid litigation you should deducted TDS on base amount excluding GST u/s 194C.

Thanks Sundarrajan sir and Ankur sir for valuable replay.

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