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Tds on reimbursements

TDS / TCS 1229 views 3 replies

If the payments made u/s 194j, are reimbursed... it is pure reimbursement... is the payment liable to tds? pls reply with relevant sections

Replies (3)

Please explain your case clearly in detail, so that proper advise can be given.

With Reference to circular no. 715 dated 08.08.95 , reimbursement of expenses ' for which bill is separately raised did not attract the provisions of section 194J'

 

Answer to your reply complete.

However , 

In my view only actual reimbursement of expenses is allowed in this exception . 

 

In case you pay  any expense whatever name may be which are not actual expense are not covered in this exception . 

e.g. DA to engineers of the errector company  ( @ Rs .2000 per day per person )  seperately

 

In case two you are advised to deducted the TDS on the whole amount even the seperate bill is raised.

 

 

With Reference to circular no. 715 dated 08.08.95 , reimbursement of expenses ' for which bill is separately raised did not attract the provisions of section 194J'

 

Answer to your reply complete.

However , 

In my view only actual reimbursement of expenses is allowed in this exception . 

 

In case you pay  any expense whatever name may be which are not actual expense are not covered in this exception . 

e.g. DA to engineers of the errector company  ( @ Rs .2000 per day per person )  seperately

 

In case two you are advised to deducted the TDS on the whole amount even the seperate bill is raised.

 

 


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