A consultant raises one invoice both for reimbursement of expenses and the consulancy services rendered during a particular period. How should we deduct the tax ,is it on the total value or the consultancy services alone. Please clarify.
malini (Senior Manager Finance) (49 Points)
29 November 2009A consultant raises one invoice both for reimbursement of expenses and the consulancy services rendered during a particular period. How should we deduct the tax ,is it on the total value or the consultancy services alone. Please clarify.
Sourabh Sharma
(CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds)
(771 Points)
Replied 29 November 2009
if seperate bills were issued then no TDS on reimbursement of expenses but if one single bill is issued then u have to deduct TDS on whole amount.
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 30 November 2009
I disagree with Mr. Sourabh Sharma & Mr. Dilip Wankhede .
Tax shall be deducted at the rate of 10% on the total bill (gross including reimbursement of expenses) amount charged.
Please refer Circular No. 715, dated August 8, 1995.
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 30 November 2009
Provided the amount should exceed Rs. 20000/- during the F.Y. U/s 194J.
Harshal
(Article Assistant )
(182 Points)
Replied 30 November 2009
Prabeer is right....TDS undr 194J
CAclubindia
