The Company has given a works contract to a contractor. In addition to the work contractor has done some works and actual cost of the work he has reimbursed from the company.
Whether TDS is applicable on this reimbursement of expenses?
MAXIM FERNANDES (Partner) (55 Points)
27 April 2016The Company has given a works contract to a contractor. In addition to the work contractor has done some works and actual cost of the work he has reimbursed from the company.
Whether TDS is applicable on this reimbursement of expenses?
MAXIM FERNANDES
(Partner)
(55 Points)
Replied 27 April 2016
U/s 194C reimbursement of expenses are not mentioned any where.
Reimbursement of actual expenses doesnt become his income. How TDS is attracted? Can you please elaborate further with a case law.
Kiresh Shivkar
(Practicing CA)
(44 Points)
Replied 28 April 2016
Sunil gupta
(student)
(29 Points)
Replied 29 April 2016
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 29 April 2016
| Originally posted by : Sunil gupta | ||
 |
Diretor has used cab service for company perpose.bill is in the name of director and he pay the bill. Now he reimbursement from the company, whether company need to follow RCM and TDS on such reimbursement? |  |
if the company books the expenses direct under travelling, then TDS issue would be between the cab service provider and company, and as the cab services are booked in lower amount brackets, which does not exceeds the threshold limit.
but if the company books the expenses as allowance and perks to the director, then the tds issue is between the director and company, and here the TDS provisions are applied,
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