Tds on reimbursement of expenses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2015 Dear experts,
Contractor has given the saparate bill for reimbursement of expenses like fooding, petrol, travelling etc. With supporting document, however the contractor has also charged ST on the reimbursement bill, plz let me know weather TDS will attract on this reimbursement bill or not.......

Thanx & Regard
Pallavi Gupta

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 October 2015 TDS is not applicable on reimbursement bill since separate bill has been raised for reimbursement of expenses.

However as per recent amendment in section 67 vide Finance Act 2015 Service Tax is applicable on reimbursement of Expenses.

Budget 2015 has amended section 67 to include reimbursement of expenses in the value of taxable service.