Tds liability on company

289 views 3 replies
Dear sir, I have one doubt, If employees of company goes on bussiness trip, car rent & airfare paid by emplyee thenafter company will be reimburse to employees, whether company is liable to deduct TDS of trvellers. & whether any service tax liability attreced as per RCM if service tax is not charged on trvellers bill.
Replies (3)
DEAR SIR , ,,,,,,,,,,,,,,,,TDS AND SERIVCE TAX IS LIABLE ON DIRECT EXPESNES WHICH IS YOU HAVE USES TO YOU GOODS AND SERVICE SUPPLY TO YOU CLIENT. ,,,,,,,,,,,,,,,,,,,,,,BUT AS YOU SAY THAT THIS IS A BUSINESS TRAVEL TRIP MEANS INDIRECT EXPESNES LIKE AS BUSINESS PROMOTE OR TRAVEL EXP.,,,,,,,,,,,,,, SECOND TOTAL COST OF TRAVEL IS MAY BE NOT HEIGH.,,,,,,,,,,,,,,,,,,,,,,,,,,, SO YOU NEED NOT DEDUCTE TDS AND DEPOSIT S.T. UNDER RCM

As rightly said by Mukesh,

TDS is not applicable and service tax need to be paid. But If a company has reserved some rooms in a hotel and continuosly, then there is a risk.

B Bala Pullaiah

 

 

Pl send any circular relating to this query


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register