whether tds to be deducted on payment through IMPREST

TDS 4683 views 18 replies

hi


i think the client should deduct tds while paying the imprest bill since from client's perspective this is no different from regular payment made to labour contractor. It is neither the reimbursement of exp nor advance against exp to be incurred. It is a one time payment made by the Company to a new joinee. On resignation of employee the imprest amount recovered can be shown as deduction from current charges payable and TDS will be computed accordingly.

Replies (18)

hi


i think the client should deduct tds while paying the imprest bill since from client's perspective this is no different from regular payment made to labour contractor. It is neither the reimbursement of exp nor advance against exp to be incurred. It is a one time payment made by the Company to a new joinee. On resignation of employee the imprest amount recovered can be shown as deduction from current charges payable and TDS will be computed accordingly.

 

I  am totally agreed with Mr Robin Gupta repliy, because if you pay  for professional charges, then tds will be deducted, payment mode may be different.

Yes, Agree with the above comment, but if there is seperate bill provided by professional for reimbursement of expenses, then no tds is to be deducted on that particular amount, but if there is no seperate invoice provided and the invoice is provided for consolidated amount, then tds is to be deducted on whole of the amount and that too at the time of payment or while crediting the account, whichever is earlier.

Anand is absolutely correct. If the payment is in nature of Imprest, TDS need not to be deducted provided the Professional is doing some expenses, which otherwise would have been done by the assessee itself.


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