Tds on separate bill of reimbursement by c & f agent

We are a pvt ltd company..or c & f agent submits two bills one for reimbursement  which includes warehouse charges, xerox charges, D.O. charges, transportation charges, documentation charges, stamp duty, loading and unloading charges and octroi duty and one of his agency bill which includes consolidates agency charges  and license registration charges.

I am under impression that no tds u/s 194c will be deducted on reimbursement bill and tds u/s 194c will be deducted on agency bill. 

Please specify whether i m correct or not and is there any circular or notification regarding my query.

Replies (5)

Dear rachna

You are right in doing so.........

No TDS to be deducted on reimbursement

Dear saloni,

Can u giv me and refernce regarding it 

Dear Rachna Issue of deduction of tds in case of reimbursement of expense was discussed by the Delhi bench of ITAT in case of Dr. Willmar sachdeva India pvt ltd wherein the circular no. 715 dated 8 august 1995 was examined. It was concluded that if there are separate bills the tds will not to be deducted on the reimbursement. If consolidated bill issued the TDS u/s 194 C is required to be deducted ON the whole amt. Hope this will help you
Please ensure that reimbursements are supported by proper bills.

Thank you Mr. Naveen and Mr. Nishant 

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