TDS on Reimbursements made to Contractors
This query is : Resolved
24 June 2008
Hai friends,
If a company reimburses the contractor for the expenses incurred by the contractor and includes a service charge.
what amount is liable for tds for the bill submitted especially for REIMBURSEMENT
ex:-
actual expenses - 100(includes service
tax incurred rs.10)
service charge - 12
total - 112
vat 12
total 124
In the above case what is the amount for which tds should be deducted.
If a company reimburses the contractor for the expenses incurred by the contractor and includes a service charge.
what amount is liable for tds for the bill submitted especially for REIMBURSEMENT
ex:-
actual expenses - 100(includes service
tax incurred rs.10)
service charge - 12
total - 112
vat 12
total 124
In the above case what is the amount for which tds should be deducted.
24 June 2008
in consolidated bill, tds will be deducted on full amount. better, contractor issue seperate bill for reimbursement. then no tds on that reimb. bill
25 June 2008
Mr. Praveen ur question is not clear. bcos, the ST will charge on service item & VAT of manufacturing or traded item. therefor no need to deduct TDS on Traded item, for which the contractor has to bill seperately.
Eg. for construction co., if appointed the contractor to supply the materials & labour.,
TDS apply only on labour+service tax u/s. 194C.
Eg. for construction co., if appointed the contractor to supply the materials & labour.,
TDS apply only on labour+service tax u/s. 194C.
25 June 2008
The company has the contract with the contractor that any activity that has been made through the contractor will be reimbursed with an additional mark up amount(profit element) of some %.
the service tax and vat is just to show the example
????
the service tax and vat is just to show the example
????
05 April 2012
SInce the contractor has submitted a consolidated bill for his service charges and reimbursement expenses, TDS shall be deducted on the total bill amount.
Further, if service tax is charged in the invoice, then TDS shall be deducted on the total bill amount including service tax.
Further, if service tax is charged in the invoice, then TDS shall be deducted on the total bill amount including service tax.
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