15 May 2008
Is the Payer is liable to deduct TDS for the payment made to Contractor which actually a reimbursement of Postal Charges for mailing of mailers incured by him on payers behalf??
15 May 2008
As per circular no 715 dated 1995 says: reimbursement expenses can not be deducted out of the bill amount.
so, if contractor gives consolidated bill, payer will have to deduct tax on total amt. if contractor gives seperate bill for reimbursements, i think tds will not apply.
CAclubindia
