TDS on Reimbursement of expense

As per Circular no 715 dated Aug 95, "while calculating TDS, reimbursements should not be separated from bill amount".

My company has depos in all four regions i.e north,east,south and west,which are handled by C&F agents. There is fixed service charges payable to them and reimbursement of expenses , at actuals. Logically we deduct TDS on service charges, but never deducted on reimbursements.Now question arises whether i need to deduct TDS on reimbursements also or not???.

As per my interpretation of the circular,  We should deduct TDS only when amount of reimbursement is included in the total bill amount, but if i am receiving separate bill i should not deduct.

Since reimbursement is not an income, does not qualify for TDS deduction.... Now if my interpretation goes otherwise, whole amount will be disallowed in my tax return as i am defaulter in deducting and paying the tax.

And if i decide to deduct , i will have to take effect from April 05, and the decision will hold good for all contractors which covers under section 194???

Please advice.