Tds on reimbursement of expenses by company
This query is : Resolved
06 May 2016
Hi Everyone,
Company is reimbursing the expenses incurred by its employees on behalf of the company.........let's take an example..... an employee takes legal & professional service & bill is raised in the name of employee, an employee makes the payment of this service and company is reimbursing the expenses incurred by employee than TDS liability will arise of com????
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Company is reimbursing the expenses incurred by its employees on behalf of the company.........let's take an example..... an employee takes legal & professional service & bill is raised in the name of employee, an employee makes the payment of this service and company is reimbursing the expenses incurred by employee than TDS liability will arise of com????
Read more at
07 May 2016
If the legal and professional service is for the company no TDS applicable.
Message likes :
1 times
07 May 2016
What is your query?
TDS is not applicable on Reimbursement.
Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615
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TDS is not applicable on Reimbursement.
Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615
Note : If you find our reply useful. Please Score us by clicking on "THANK USER"
Message likes :
6 times
07 May 2016
Seetharaman Sir,
Why??
Why??
07 May 2016
Abhishek Sir,
than it will be a tool for the com. for avoiding TDS liability.....
than it will be a tool for the com. for avoiding TDS liability.....
07 May 2016
TDS is not liable to deduct on reimbursement to employee, but TDS is liable on payment of legal & professional services if it is used on behalf of the company. It means if TDS is liable to deduct it is credited in account of service provider, not in the account of employee.
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1 times
07 May 2016
Reimbursement is payment to employee for small expense for company. Legal fee and other payment to firm can not paid via employee it will be paid directly to the professional and TDS will be applicable on it.
Message likes :
5 times
07 May 2016
I agree with the views of CA Sunil K Garg.
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1 times
07 May 2016
Company credited payment in the account of employee itself instead in the account of Service Provider. In such case how can Company deduct TDS for the same ?
07 May 2016
CA Sunil Garg Sir,
Company credited payment in the account of employee itself instead in the account of Service Provider. In such case how can Company deduct TDS for the same ?
Company credited payment in the account of employee itself instead in the account of Service Provider. In such case how can Company deduct TDS for the same ?
07 May 2016
In this case TDS will not deductible. How much amount is paid?
Message likes :
2 times
07 May 2016
Amount Rs. 50000/- paid to employee
07 May 2016
Company should pay amount after deduction of TDS in account of employee because it is company liability to deduct TDS not of employee.
07 May 2016
than will employee bear the loss......?
09 May 2016
TDS will not deduct. neither bill in the name of company nor payment in the name of professional. It will be booked as non taxable reimbursement.
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