TDS

This query is : Resolved

radha (Querist)
Follow

18 June 2009 XYZ Pvt Ltd co., paying every month Building rent Rs. 30000/- and telephone charges, elct. charges & other expenses over all Rs.15000/- to ABC Pvt Ltd co. - then XYZ to be deducted TDS from ABC for rent 22.66% and in which rate TDS to be deducted on reimbursement exp.(as above mentioned expenses -which is not a maintenance or Hire charges)and also which under sec.(Nature of Payment)to be accounted

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
Follow

18 June 2009 Dear Radha
Reimbursement of Expences is not a income of ABC Pvt.Ltd. so no need of deducting TDS on Rs.15000/-

Message likes : 1 times

Ratan Sharma

Ratan Sharma (Expert)
Follow

18 June 2009 Agreed with expert. No need to deduct tax on reimbursement of expenses.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
Follow

18 June 2009 agree with the expert

taxindiaconnect

taxindiaconnect (Expert)
Follow

18 June 2009 I do not agree with the this proposition. In case if the reimbursement is being made against the actual bill then only the this proposition holds good. However from the language of the query it seems that the fixed charges are being paid for so called reimbursement of expenditure. Payment of a fixed charge for shall partake the character of rent in such case, accordingly a TDS @ 22.66% would be required to be deducted.

Message likes : 1 times

SUBRAMANYA H

SUBRAMANYA H (Expert)
Follow

19 June 2009 reimbursement of electricity,water charges to land loard supported by bills need not deduct tds, other wise 22.66% tds applies

Message likes : 1 times