Tds on reimbursement of charges
This query is : Resolved
14 May 2013
Sir,
we have been receiving reimbursement of electric charges from one of our clients,against debit notes raised.
now this year they insist on deduction of TDS on this payment.
Is it deductible ,
please advise,
regards,
ashok thakker
we have been receiving reimbursement of electric charges from one of our clients,against debit notes raised.
now this year they insist on deduction of TDS on this payment.
Is it deductible ,
please advise,
regards,
ashok thakker
14 May 2013
Reimbursement of expenses are not INCOME. These are charges paid by one person on behalf of another and then got back through raising debit note.
In case there is no seperate electricity meter installed by electricity company for tenent and it is in the name of landlord, the landlord can pay the bill and as per agreement he can get reimbursment for the same from tenant.
In case, electricity charges are getting reimbursed on the same rate as you are paying to electricity company and the copy of electricity bill is also attached with debit note raised, there should not be any implication of tds on this amount. However, if landlord is charging for electricity at some agreed rate irrespective of amount payable to electricity company, tds provisions of section 194C may be applicable.
In case there is no seperate electricity meter installed by electricity company for tenent and it is in the name of landlord, the landlord can pay the bill and as per agreement he can get reimbursment for the same from tenant.
In case, electricity charges are getting reimbursed on the same rate as you are paying to electricity company and the copy of electricity bill is also attached with debit note raised, there should not be any implication of tds on this amount. However, if landlord is charging for electricity at some agreed rate irrespective of amount payable to electricity company, tds provisions of section 194C may be applicable.
Message likes :
1 times
14 May 2013
Thanks,Sir...
regards,
ashok thakker
regards,
ashok thakker
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
Trending Online Classes
CAclubindia
