Reimbursement of expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2013 is it treated as rent and attract TDS under 194 - I

1. apart from fixed rent any payment like annual maintenance reimbursement to owner of asset(whether or not a written agreement/arrangement) - whether TDS provisions will attract or not.

2.If not attract TDS any consequence under section 40(a)(ai)(dis allowable expenditure)

Please give clarification for the above with supporting and references,case laws if any.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2013 Incase the reimbursement against actual expenses then no tds apply. in case other then that TDS u/s.194C apply as maintenance contract.

2. yes. if the TDS not deducted,. sec.40(a)(ia) will apply and expenses will be disallowed to the extent of maintenance charges paid