Our company gives advance to the employee to meet expenses incurred at the branch. Nature of the transaction includes fix payment to labour contractor,rent ,electricity ,water,food ,stationery purchase,internet service ,mobile expenses etc..
Post payment employee prepares a voucher and sends the same to HO for accounting against advance payment.
Some of the expenses attract TDS as well.
Now my question is, Do we as a company need to deduct TDS on such reimbursement?
01 December 2023
No, TDS not deductible for the said transaction through employee. it's purely for company's expenditure. So, TDS not applicable to the employee.
02 December 2023
TDS need to be deducted on the payment to the contractor by the employee. Advice him properly to deduct TDS and TDS remittance can be made by the company.
CAclubindia
