TDS on out of pocket Expense

Ya. TDS to be made...........

Since section 194J refers to ‘any sum paid’, reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of tax deduction at source.

    Circular : No. 715, dated 8-8-1995

Reimbursement of actual expenses - Section 194C refers to ‘any sum paid’. Obviously, reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of tax deduction at source—Circular : No. 715, dated 8-8-1995.

However i do feel that if a separate bill is given for the same then TDS not deductible.