Tds on reimbursement of expenses

TDS 825 views 6 replies

Is it necessary to deduct TDS on reimbursement of expenses? Here company A pays security service charges to an outside agency for their services and deduct TDS @ 2% U/s 194C. Then the other companies of the same group reimburse their proportionate expenses to Company A as the payment was made wholly for the group. Here when the other companies reimburse the charges to Company A, is there any requirement to deduct TDS? Please comment .

Replies (6)

-i am a seller in snapdeal
-i do not have a tan number
-snapdeal and flipkart are saying that it is not mandatory to have tan number
-if my commission amount crosses 5000 in a year
-i will get charged for tds or not
-if i get charged for tds , how will i get my tds reimbursement if i do not have a tan number

 

i dont think it is necessary to deduct tds because it is inter unit transaction.

Tax is not required to be deducted at source in case of reimbursements.

Originally posted by : darshan
-i am a seller in snapdeal
-i do not have a tan number
-snapdeal and flipkart are saying that it is not mandatory to have tan number
-if my commission amount crosses 5000 in a year
-i will get charged for tds or not
-if i get charged for tds , how will i get my tds reimbursement if i do not have a tan number

 

For refund of TDS amt. which deducted by other u will need to file your income tax return.

inter group transactions also attracts tds
Practically n sensibly there shud b an agreement to determine what exactly is comp A Share. A shud deduct tax only on their share. Other comp shall deduct tax on their respective share and pay net of tds to A


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