Hi Sir or Madam
Could some one please advise
is there any TDS applicability on Auditors out of pocket expenses
Amount is 9,000 rupees per month it is receiving in Cash
Please advise
Thanks on advance
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TDS on Auditors out of pocket expenses
Replies (5)
Quick Summary
Out of Pocket expense means please
Sec 194J NOT TO BE CHARGED ON OUT OF POCKET EXPENSES.
Tds is not applicable if it is not form part of fees for professional services.
But auditor remuneration includes out of packet expenses as per companies act
But auditor remuneration includes out of packet expenses as per companies act
Out of pocket expenses is not the correct disclosure in Profit and Loss account.
Deduct on the total, if billed together:
• CBDT Circular 715/1995 (Q30): reimbursement of expenses billed separately or included in the professional's bill is part of fees for professional services. TDS under 194J applies to the gross amount, including out-of-pocket expenses.
• Exceptions some tribunals allow: pure reimbursement at actuals, supported by third-party bills and billed separately. But follow the Circular to be safe.
• So deduct 10% under 194J on audit fee + OPE (Rs 9,000 a month), excluding GST if shown separately (Circular 23/2017). The threshold is Rs 50,000 a year from 1 April 2025 (Rs 30,000 earlier).
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