TDS on Auditors out of pocket expenses

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
Replies (4)
Quick Summary
This discussion explores the applicability of Tax Deducted at Source (TDS) on an auditor's out-of-pocket expenses, specifically when paid in cash and amounting to ₹9,000 per month. The consensus suggests that TDS under Section 194J is generally not applicable if these expenses are not considered part of the professional fees. However, it's noted that company law might include them in auditor remuneration, and they should not be disclosed as separate 'out-of-pocket expenses' in the Profit and Loss account.

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
Out of pocket expenses is not the correct disclosure in Profit and Loss account.

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