TDS on reimbursements

This query is : Resolved

Shilpa (Querist)
Follow

17 August 2010 We have recieved an invoice from our outsourcing agency towards reimbursement of insurance premium paid by them for the outsourced staff of theirs at our premises. Is TDS deductible on this reimbursement.

VINOD ARORA

VINOD ARORA (Expert)
Follow

17 August 2010 if the insurance is procured on your behalf and at your instructions, then no TDS

in case obtaining insurance is duty of outsourcing agency and the reimbursement is part of the contract value, then TDS has to be deducted

Message likes : 1 times

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

17 August 2010 From the wording of your query, it is apparent that the subject reimbursement is merely a reimbursement of insurance premium for the staff deployed at your premises.

So in this case TDS will not be applicable.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!