14 March 2008
A Sub-Contract given to the party for Site cleaning, leveling, compound work etc (Land Development). Suppose Party is from Pune and Site is at Guwahati. Party Claim the travelling expenses on his letterhead without attaching any supporting.
Should i deduct TDS on travelling claimed by party? if yes at what rate & under which section?
14 March 2008
Any contractual payment would be liable for TDS. To prove that it is expenditure reimbursement is away from the contractual payment certainly requires evidence.
14 March 2008
REIMBURSEMENTS DONT ATTRACT TDS. FOR THAT PURPOSE TAKE SEPARATE TA CLAIM AS REIMBURSEMENT AND DONT ATTACH IT TO THE SUBCONTARCTOR BILL FOR HIS WORK. IN THE BILL FOR THE WORK ENSURE THERE IS NO REFERENCE TO THE TA BILL CLAIM . R.V.RAO
15 March 2008
1. What is AOI? 2. Even if you claim the travel expenditure separately, unless it is supported by vouchers, the problem of considering it as a reimbursement of actuals is very bleak.
CAclubindia
