01 November 2011
If an employee of the company representing the company is paying the Hotel Accomadation cost then no TDS is deductible as per Circular 5/2002 since it is the employee who is incurring the expenditure and who is later on reimbursed by the company.
What if in the above scenario, Employee representing the company is paying the above cost from Advances received from the company....is TDS deductible??
02 November 2011
After incurring the expenditure the employee has to still submit the bills to the company for verification and approval.
So unless the company approves the bills of the employee, we can not say that the company has incurred the expenditure. Hence the question of TDS does not arise.
CAclubindia
