18 February 2009
I have an invoice from a professional only for out off pocket expense. He charged service tax as well as FBT reimbursement on this invoice. Whther TDS is required to be deducted or not? If required, on which amount it is to be calculated? Will it make any difference, if the professional raised only one invoice for service charges as well as reimbursement of out off pocket expenses?
18 February 2009
Service Tax: TDS has to be affected on Service Tax part of the Bill (Exemtpion is provided for Svc Tax in case of Rent only)
FBT: (Travelling) Expenses are incurred by Professional.Irrespective of whether the Professional gets reimbursement or not, he (Professional) is responsible to pay FBT. I draw this inference after visiting http://www.capitalmarket.com/Cmedit/story11-37.asp?SNo=156102
Whether you reimburse FBT or not depends on Terms & Conditions agreed between you and Professional. If you reimburse the Professional of FBT amount, it has to be obviously treated as "any sum paid" to the Professional. So TDS has to be affected on FBT reimbursement to the Professional
CAclubindia
