TDS on re-imbursement expenses -Urgent

Yes !!!

The company is liable for TDS, even though, the bill will in the name of employess,

as  ultimately , your employer is gonna reimburse it .

so it means expenses shall be borned by the employer only.

Thank you for revert amit

 But  What about

Circular No.715 dt.8-8-1995 which states that -

any sum paid”, if the bill contains reimbursement of expenses also, the TDS is applicable on the reimbursements also.

However, if there are separate bills for contract payments and reimbursement of expenses, then, TDS is not required to be made on reimbursement of expenditure.

As in intsance case separate bill is in name of employee and not in name of company.

yes, you can not evade tax just by making 2 transection of the one. it is on the face that company is ultimately liablefor the expenses. thus TDS liability would be on company only

Thank you for help prakash.

Need one more clarification on the same.

1. Whether TDS is attracted for such recreational activity which includes lunch arrangements , conference hall facility ,  outsport facilities like water world etc.  Bill amount will be above 50000/-If yes whether under 194 c or 194j 

2 How payments arrangements can be made in such cases for TDS as well as reimbursement?

  Please guide on this

it is a contract so 194c will be attaracted

Dear Mam,

I agree with other members, TDS should be deducted u/s 194C.

Since it is a single contract for making the entire arrangement for the event & the fact that bill is in the name of the employee can't be taken as a measure to escape from TDS provision.

The circular which you pointed out cannot be applied in the present case

Further mam, I would say try & get the invoice in the name of the employer cos then it won't create any problem in claiming the expenses otherwise Auditors & IT Department can simply say that since the bill is not in the name of the employer these expenses are not related to business & u will not be able to prove it in the absence of TDS deduction. 

Thank you all so much for helping to get  the clarity...

Agree with all. Further what has been mentioned in Circular No.715 dt.8-8-1995 is in the context of clearing & forwarding agent wherein total payment made to agents also include reimbursement of expenditure incurred by him.