TDS on Reimbursement

4858 views 12 replies
User Avatar

service
46 Points Joined January 2008
We are importing materials from overseas and pay the octroi on the same. We have appointed Agent for this who pays the octroi amount and charged service amount for his services. He gives us full bill including Octroi amount which we reimbursed him on the next day. My question is whether TDS is applicable on full amount including Octroi or on service charges only.
Reply Share Follow
On 06 February 2008 at 11:23 Report
Replies (12)
User Avatar

DGM-F & A
1734 Points Joined November 2007
yes,If the bill is consolidated then on full value TDS is applicable
Reply
On 06 February 2008 at 12:43
User Avatar

CA Final
814 Points Joined January 2008
Tax has to be deducted on the whole amount of bill, if the bill doesnot contain any segregation between reimbursements and service charges.
Reply
On 06 February 2008 at 13:40
User Avatar

service
46 Points Joined January 2008
If we take two different bills (1 for Octroi amoutn and 2 for Service Charge ) from the Agent then what will be implication of TDS.
Reply
On 06 February 2008 at 15:13
Guest
If separate bills are received then TDS will be applicable only on service charges. no tds on reimbursements
Reply
On 06 February 2008 at 16:16
User Avatar

CA Final
814 Points Joined January 2008
If two bills are available separating the reimbursement and service charge amounts, then TDS will be applicable only for service charges.
Reply
On 06 February 2008 at 16:42
User Avatar

Guest
439955 Points Joined August 2012
Can you give me any circular or any other reference to substantiate that tax need not be deducted on reimbursements.
Reply
On 07 February 2008 at 14:36
User Avatar

CA Final
814 Points Joined January 2008
Ms. Abinaya, I can give you a circular, which says that TDS has to be deducted on reimbursements. It is Q. no 30, Circular No.715 dated 1995.(If i am not wrong).
Reply
On 12 February 2008 at 15:51
User Avatar

consultancy
45 Points Joined May 2008

The answer is very simple.  The person appointed for the purpose of discharging the liability of octoria is expected to provide the receipt for payment thereof.  Then no TDS will be deducted on that amount.  In theabsence of proof of payment, the full amount will be liable to TDS.

Reply
On 03 June 2008 at 23:04
User Avatar

C.A. C.S.
107 Points Joined March 2009

Plz tell mewhether tds wiil b applicable on reimbursement to employyes

Reply
On 18 March 2009 at 14:31
User Avatar

DGM-F & A
1734 Points Joined November 2007

Dear,It depends the nature of reiumbersement. if Its Exp. for company or personnel  exp. reiumbersment in medical/Conveyance ETC is taxable,others are not.

Reply
On 18 March 2009 at 21:16
User Avatar

C.A. C.S.
107 Points Joined March 2009

Pls do tell me the Circular No.

Reply
On 26 March 2009 at 16:51
User Avatar

accounts assistant
702 Points Joined October 2009

When party received a Octroi bill as following from his Octroi agent then what is TDS Amount & on Which Rate / Why?

Octroi charges = 53,574/-

Finance charges = 804/- (1.5% of octroi)

Clearing charges = 500/-

Form charges = 10/-

Total = 54,888/-

Reply
On 27 March 2010 at 12:36


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading