Deduction of tds

Hi Friends,

Is it mandatory for deduction of TDS on Reimbursment of expenses along with Professional charges?

Replies (2)

Dear Nagendra,

 

TDS cannot be deducted on expenses reimbursed but however TDS should be deducted on Professional Fees paid u/s 94j.

Originally posted by : Nagendra
Hi Friends,
Is it mandatory for deduction of TDS on Reimbursment of expenses along with Professional charges?

 

TDS on reimbursement is required to be made if a single bill is raised for the professional fee inclusive of reimbursement of expenses. In such case cases TDS is to be deducted on the gross amount i.e. on the aggregate amount of professional fee and amount of reimbursement of expenses.

Q.30 of Circular: No. 715, dated 8-8-1995.
.
However, TDS is not required to be deducted on such reimbursement of expenses where separate bills are raised for professional fee and for reimbursement of actual expenses duly supported by expense bills.

 

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