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TDS Query

Stat Audit 935 views 3 replies

Kushal

Student

225 Points Posted on 04 April 2009

Is TDS to be cut on reimbursement of expenses if they form part of the same bill
but are shown separately in the same bill ??
For e.g :- A stat audit bill raised by a CA :-

Fees for stat audit (incl ST ) 30,000

Reimbursement of out of pocket expenses 2,000

Is TDS to be cut on entire Rs. 32,000 ? or 30,000?

Replies (3)

Guest

Yes.....TDS is applicable on the overall amount i.e. Rs. 32000/-

deepak K Gujrati

CA-practice

1077 Points Posted on 09 April 2009

TDS is not to be deducted on service tax amount.

Believe that TDS should be deducted even on service tax charged with service fee by service provider. As the service charge include the full payment including service tax and only the provider of service have right to collect the service tax from service receiver hence there is no reason that the amount is going to credit into govt. account. Also there is circular 275/73/2007/IT (B) dated 30/6/08 which clarify that TDS is deductiable even in case on service tax.