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T.D.S ON REIMBURSEMENT
I WANT TO CONFIRM THAT IF ANY SORT OF STATUTORY REIMBURSEMENT IF MADE TO THE WORK CONTRACTOR OR TO ANY TRANSPORTAR FOR EG: P.F REMBURSEMENT OF P.F DEPOSITED BY THE CONTRACTORS FOR HIS LABOUR OR ANY TAX REIMBURSEMENT SUCH AS A.G.T (ADDTIONAL GOODS TAX) REIMBURSEMENT
Replies (12)
there should not be any TDS on reimbursements of govt duties, although there is no harm in deduction.
u must deduct TDS on all the amounts payable to contractor towards the work done, whatever be the shape of the consideration, be it be PF or.....
jaindeepak.
jaindeepak.
as per section 194C tds is to be deducted on any sum payment. It does not give any exemption to the portion pertaining to the tax portion on contract payments.
if the calimant has submitted two seprate bills one for reimbursement of claim and the other for fee then no TDS will be applicable on reimbursement however if a single bill is there on has to deduct the TDS. Circular no 715 clearly state that Tax to be deducted at source on the full bill amount including reimbursement.
i agree with opinion of rajeshmittal
As per strict interpretation of question no.30 of Circular no.715:215 ITR (St.)18, tax is to be deducted on the gross amount of the bill. But general view has been taken to deduct tax on net amount of the bill since on deducting TDS on gross amount gives us absurd interpretation
There should two different bill 1)for professional fees and 2)for reimbursable expenses
If one only bill is given then TDS is to be on gross amount or other way round if two different bill is given then TDS only on professional fees.
If one only bill is given then TDS is to be on gross amount or other way round if two different bill is given then TDS only on professional fees.
TDS is to be deducted on the whole of the bill amount and no sum can be deducted vfor TDS 194 C as per circular 715
no
please confirm tds is applicable under 194c when contractors have kept reimbursement expenses
Hi
B and A are under the same group. B take reimbursement fom A for payment of salary to employee of B. Will A have to deduct TDS on such reimbursement & if yes under which section 194C or 194J.
Please advise ASAP.
Thanks & Regards,
Hemal Panchal
hello !!
if A is purchasing grocery & provision & housekkeping material for B.
A is taking reimbursement and service charge on reimbursement. will service tax will be charged. will B can deduct TDS. plz advice.
thanx
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