TDS on reimbursements to employees

dear sir,

to the best of my interpritention of tds provisiones , in the present case it is not applicable.

Thank You Rajesh...

But wat if the bill contains the name of the company as the consinor??

Dear Shashank,

       in the case given by u, u have said the co. has reimbursed more than rs.20000/-. hence it s an expenditure for the co. so it will write it off in the P & L a/c as courier charges. So, definitely, tax must be deducted. Its not the employee who is incurring the exp. The exp. is incurred by the co. only.hence, TDS Must b deducted  

Thank You Mukund Sir,

Yes the company has definitely charged this expense as Courier Charges in the P&L account.

This was the stand taken by me but the same is not being accepted by the auditee, Could you kindly suggest any case laws / circulars / notiication etc

I dont think there is any case law for the given scenario.  It has been said in 194C that the person RESPONSIBLE for paying the amount to contractor must deduct TDS. In the given case, the employee has no responsibility to pay to the courier agency. It is only the companies responsibility to pay to the agency. Hence, it has to deduct TDS. You can quote 194C to ur auidtee

Ok Sir,

Thank u :)

i agree with Mukund Sir

Company has reimbursed the employee for carrying out a expenditure on behalf of the company , so clearly tds will be deducted on the whole amount ( including service tax if any)
 

Fully Agree with Mr. Mukund