Tds on reimbursible expenses of a pure agent

Dear Sudhakar,

Since it is a mere reimbursement involving no income component for the client TDS need not be deducted. What is the document by which you are making the   re-imbursement?

Prashanth.

There is no document .we receive the cheque and pay the cheque .Sometimes after depositing in the bank.

Pure agent does not get TDS deducted on the reimburesment...

IS there any document prescribed for this?

No document is prescribed for this. I just asked if you are re-imbursing by way of any document. Now you have clarified.

Prashanth.

Hi

I agree with all,

But my doubt is whether you are asking about TDS on your payment to your vendor or about the TDS on payment received from your customer.

In case of payment received from your customer:

Customer is not required to deduct TDS while makking payment to you as it is pure agent service.

But in case when you are making payment to your vendor:

You are required to check whether the payment is covered under any of the provisions of TDS and deduct accordingly.

Regards

Devivaraprasad

Hi

I agree with all,

But my doubt is whether you are asking about TDS on your payment to your vendor or about the TDS on payment received from your customer.

In case of payment received from your customer:

Customer is not required to deduct TDS while makking payment to you as it is pure agent service.

But in case when you are making payment to your vendor:

You are required to check whether the payment is covered under any of the provisions of TDS and deduct accordingly.

Regards

Devivaraprasad