CA Manikandan Raghunath ( ) (609 Points)
11 September 2009In case a consultant raises a bill say for Rs.3000 (his professional fees). And he claims reimbursement (out of pocket expenses) which he did not include in the bill.
On what amount TDS should be deducted??
On the bill amt or on the total amount payable to him??
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 11 September 2009
on the amount mentioned in the bill raised by him.
Yogendra Rawat
(CHIEF FINANCE MANAGER)
(48 Points)
Replied 11 September 2009
TDS is applicalbe only Professional fee and other reimbursement or outof pocket exp. is not comes under TDS.
Subash Srinivasan
(chartered accountant)
(390 Points)
Replied 11 September 2009
aurangzaib khan
(financial consultant)
(95 Points)
Replied 11 September 2009
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 11 September 2009
If separate bill raised for Fees & expenses then TDS should be deducted on fees only. But Service tax is applicable for both.
Ramya
(Internal Audit)
(59 Points)
Replied 11 September 2009
it is clarified by CBDT circular that TDS is deductible on total payment
Santosh kumar
(J.A.M)
(73 Points)
Replied 11 September 2009
What Subash Srinivas Posted is 100% correct
AJAY PRATAP
(FINANCIAL CONSULTANT)
(72 Points)
Replied 12 September 2009
TDS SHOULD BE DEDUCTED ON BILL AMOUNT OF RS. 3000/- ONLY & TDS WILL BE DEDUCTED ONLY WHEN THE PAYMENT MADE TO PROFESSIONAL IS MORE THAN RS. 20000/- IN A WHOLE YEAR
Gitanjali Kalra
(Chartered Accountant)
(22 Points)
Replied 12 September 2009
If a seperate bill is issued for reimbursement, no TDS will be deducted. However if the amount of reimbursement is in the same bill, TDS has to be deducted on the Gross Amount i.e including TDS
Rajeev
(www.rkmco.com)
(985 Points)
Replied 20 September 2009
The words used in Sec 194J are "any sum paid " , so i guess tds is also applicable on reimbursements . Clarification is provided by the board
Batul
(Article assistant)
(207 Points)
Replied 30 September 2009
tds should be deducted on bill amount but it is to be deducted only if the single payment exceeds Rs 20000/- or the annual overall payment exceeds Rs 50000/-
CA Manikandan Raghunath
( )
(609 Points)
Replied 02 October 2009
Pls refer circular no 715 dtd 08.08.95
It says that reimbursement cannot be deducted out of the bill amount for the purpose of calculating TDS portion.
Pls refer to the link for clarity
https://law.incometaxindia.gov.in/Directtaxlaws/act2005/Sec_194C.htm
Rajeev
(www.rkmco.com)
(985 Points)
Replied 02 October 2009
mother of all circulars 715
30. Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
CAclubindia
