I am a freelancer, i do mystery evaluations for various agencies, recently i did some assignments where my task was to evaluate 3-4 hotels of a hotel chain, here i had to stay 3D-2N and evaluate all services of the hotel. my question is my fee for the evaluation was just Rs 2000 per hotel and all other expenses like TA/HOTEL BILL etc to be reimbursed by the agency, but now they are deducting TDS on total amount, like i evaluated 4 hotels each hotel expenses was 25000 including 2000 audit fee. so for 4 hotels they are deducting 10000 as TDS on 1 lac, while my actual payment is rs 8000 for this 4 evaluations. what to do now. PLEASE REPLY IN DETAIL URGENT. I am not a tax paymer my income does not come in any tax bracket.
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Tds for freelancer
Replies (5)
Hi Swapnil,
Since it is clear that all the other exp except your service bill is reimbursed there will be to TDS on such exp.
however TDS can be deducted on your service bill U/s 194J if the total service rendered exceeds Rs.30000 in a year but in this case the expense amounts to only rs.8000 so there will be NO TDS on that bill.
You shall convey the conditions laid U/s194J of income tax act to your client regarding this issue.
Best Regards
Navin.
My question is just here company is paying rs 92 thousand reimbursement for their own service evaluation not for my payment, my payment is just rs 8000/- only but TDS is deduted on whole amount, they said they will issue me a tds certificate where i can get refund by showing loss, i am a simple man and couldn't understand anything, i just know that i did a work for which i paid 92K in advance just to earn rs 8000, now i am paying 10000 as tax on earning rs 8000.
Swapnil look if they hav already deducted the TDS amount & deposited the same into goverment A/c then there si only one way that is to claim refund by filling ITR.
But wahtever ur client is saying is not valid.
Under any cirumstances in your case there will be no liability of TDS to be deducted by your client.
TDS should not be deducted on reimbursement bills.
Since in your case Professional Fees in below the Thresh hold limit of Rs.30000/- so tds should not be deducted u/s194J
Please note i am individual only, i am not holding any registered co etc. i just served individually. does it matter.
i sent all actual expenses bills to company for which reimbursement is to be done.
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