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194J of I.T.act

CA.Sourabh jain (chartered accountant) (71 Points)

18 September 2009

what will be the TDS liability if a person raise the professional bill along with TA/DA ? Is TDS is deductible on full bill amount alongwith TA/DA?

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6 Replies

CA Adarsh (Job) (82 Points)
Replied 18 September 2009

if professional bill shows amount of Services rendered and amount of out of Pocket Expenses(TA/DA) seperately, then TDS will be deducted on the amount of service charge not on TA/DA.

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CA.Sourabh jain (chartered accountant) (71 Points)
Replied 18 September 2009

can u pls tell me any case law , or any circular,if any

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 18 September 2009

Sourabh

Adarsh says correct that if your bill is inclusive of TA/DA expenses then TDS will be deducted on whole amount anf if oyu shows them seprately then deduct TDS only on professional charges.

For your reference oyu can refrer circular no. 715 of dated August 8 1995 . visit site incometaxindia.gov.in.

Rajeev (www.rkmco.com) (985 Points)
Replied 19 September 2009

194C and 194J refer to "any sum paid" ....its not written anywhere that tax should not be deducted on reimbursements like DA/TA. any sum paid would mean and include everything that is paid . so reimbursed expenses are also tax deductible in my view . whether you write seperately or not , is not important . i think you have to deduct tax :)