Tds on reimbursement

TDS 652 views 3 replies

Hi,

We have appointed one super stockiest and he has appointed some marketing guys. He pays the salary to those marketing person and inturn we reimburse the same to him. We can also get the acknowledgement for salary distribution.

Can anybody please advise whether TDS is applicable on such kind of reimbursement ? 

Replies (3)

Hi

Definatley yes, U/s194 C.

Then also i want like to know arrangement netween both of you firm.

 

RGds//Vabs

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Thanks Vaibhav

We have a superstockiest who sale our goods to various distributorsin his teritorry. The markting guy is employee of super stockiest and work for distribution / sale of our product. As per the arrangement we reimbursement partial / full salary of that marketing guy to the super stockiest.

We can also get the actual acknowledgement of payment of such salary and super stockiest dose not make money out ot it.

I assume TDS should not be applicable on this as this is purely in the nature of Reimbursement and no profit is made out of it.

Further, the super stockiest is also liable to deduct tax u/s 192 for the salary payment.

Please advice.

 

Hi,

In this case who is issuing Job Appointment letter to Employee, If you are issuing then you have to deuct TDS as per Salary if not then TDS is to be deducted as per 194C.

 

Rgds//Vaibhav
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