T.D.S ON REIMBURSEMENT

Others 3937 views 12 replies

Suresh Balani

13 Points Posted on 10 May 2007

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)

Som

112 Points Posted on 10 May 2007

there should not be any TDS on reimbursements of govt duties, although there is no harm in deduction.

Jaindeepak

52 Points Posted on 10 May 2007

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.

Vk Duggal

320 Points Posted on 10 May 2007

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.

Rajeshmittal

71 Points Posted on 10 May 2007

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.

Rinit

25 Points Posted on 10 May 2007

i agree with opinion of rajeshmittal

Shreyas

16 Points Posted on 10 May 2007

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