Hi Members
I have a a question regarding the applicability of TDS for payments made by Employees through their personal credit cards. And then seeking a reimbursement from Company.
According to me, since employees would not be subject to Tax Audit u/s 44AB (obviously) would not come under the provisions of TDS. But however this can be major loophole for avoiding the TDS.
Please advise.
Thanks
Isha
hello CA Isha.
In my opinion liability of expenses are of the company only and employees are only paying on behalf of company. So company has to deduct TDS of the person ultimately receiving the amount. Otherwise almost all persons will escape from deducting TDS by paying through their employees.
ADY & CO.
New Delhi
Graduate (Any)
View Details
N N V Satish & Co.,
Hyderabad
CA Inter
View Details
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
HKC | Chartered Accountants & Business Advisors
Ludhiana
CA
View Details
CCI
Pro
CAclubindia
