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Anand Saraf (Student CA Final )     21 April 2015

Tds of reimbursement in case of advertising expense

A bill is being raised on the company. It has 2 components one reimbursement for advertisment expenditure and one professional charge on the advertisment expenditure. The clinet's contention is that TDS will not be deducted only on the professional charge and not on the whole. But the company wants to deduct the same on the whole amount, seeking both as expenditure. As both will be shown as expenditure in the co's book. Whose contention is right?

 1 Replies

Vineet Goyal

Vineet Goyal (Assistant Manager - Finance & Accounts)     25 April 2015

Supplier needs to provide separate bill to your company for reimbursement and professional services. If consolidated bill is given, TDS is applicable on whole amount. If separate bill for reimbursement is given, it should be supported by bills raised on supplier by his supplier to prove it is a reimbursement on document. If the supplier fails to provide supporting, TDS is applicable on that bill as well.

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