Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)   (1372 Points)

17 June 2014  

As we have a provision that if client has raised a seperate bill for reimbursement of expenses either u/s 194C or 194J then T.D.S is deductible only on Service charge and reimbursement of expenses are to be excluded for the purpose of T.D.S deduction. My  doubt is whether Reimbursement expenses are to be taken in to consideration while checking applicability of T.D.S or not. i.e if client paid Rs.20000 for service charge and raised a seperate bill for 30000 for spare item under a contract of Repairs of the asset, then is T.D.S provision apply? if so i aware that T.D.S to be provided on 20000 only.Early reply needed,Thank you.