07 November 2009
Sir, If u reimburse expenses amounting above Rs. 20,000/- to tempo or lorry to the party from whom u purchase goods & on the same goods u also pay VAT/CST. If there is no seperate bill provided and reimbursed expenses are included in the purchase bill will it be feasible to deduct T.D.S on the whole bill,since there is no work carried out by the party and we are just reimbursing the expenses that he made on our behalf. Should we deduct T.D.S. on the same considering it as work carried out on our behalf
07 November 2009
TDS to be deduct on the payment of lorry hire @ 1% if individual and @ 2% if other than individual. If they have given to you seperate bill of transporation, in case TDS will be deduct. and freight amount inclusive in purchased goods bills and vat and cst charged on that tds will not be applicable.
07 November 2009
Sir, If while paying the transporter the party has deducted T.D.S. then there is no need for us to deduct T.D.S. even if the party gives us a seperate bill for reimbursement, because if we do this it will amount to double taxation isn't it.
CAclubindia
