If the consultants bill is a composite bill and conveyance charges forms part of it then TDS is required to be deducted on the whole amount.

On the other hand if a separate bill for conveyance / out of pocked expenses is given, then there is no TDS liability attached to it.

As per section 194J Any person who is responsible for paying to a resident any sum by way of fees for professional services, or fees for technical services or roaylty shall deduct tax at source @ 10% if the total amount during the financial year exceed Rs. 20,000/-.

TDS shall be deducted at the time of credit of such sum to the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode withever is earlier.

Reimbursement of Expenses:

The Delhi bench of the Income Tax Appellate Tribunal in ITO V. Dr. Willmar Schwabe India (P.) Ltd. held that reimbursement of expenses for which bill is separetaley raised did not attract the provision of section 194J.

Accordingly, if the separete bill is raised for out of pocket expenses or reimbursement of expenses, it would not subject to TDS.

However, if a consolidated bill is raised then the TDS would be deducted from the gross amount. The amount of reimbursement would not be deducted from the bill amount.

Originally posted by : CS Ankur Srivastava
	As per section 194J Any person who is responsible for paying to a resident any sum by way of fees for professional services, or fees for technical services or roaylty shall deduct tax at source @ 10% if the total amount during the financial year exceed Rs. 20,000/-.   TDS shall be deducted at the time of credit of such sum to the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode withever is earlier.   Reimbursement of Expenses:   The Delhi bench of the Income Tax Appellate Tribunal in ITO V. Dr. Willmar Schwabe India (P.) Ltd. held that reimbursement of expenses for which bill is separetaley raised did not attract the provision of section 194J.   Accordingly, if the separete bill is raised for out of pocket expenses or reimbursement of expenses, it would not subject to TDS.   However, if a consolidated bill is raised then the TDS would be deducted from the gross amount. The amount of reimbursement would not be deducted from the bill amount.

Agree with Ankur

Point to be Noted: With Effect from 01st July 2010 the applicable amount for Deducting TDS on Profession has been increased from 20000/- to 30000/-.

Regards

Sridhar.

Agreed with above repliants.

Agree with CA Rupesh Joshi........

Agree with Ankur sir

agree and good post.

Agree with Ankurji

thanks for sharing.

sir

for the month of march , i have  credited professional fees  in  april -12, and payment is also in april -12 then what will be  last date to deposit tds , reply soon plz....................

sir

for the month of march , i have  credited professional fees  in  april -12, and payment is also in april -12 then what will be  last date to deposit tds , reply soon plz....................

If you credited & paid provided service by the way of professional & technical fees on April 2012, then TDS deducted on said professional & technical fees deposit to central government account is next 7day of May 2012, without pay Interest.