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Deduction of tds

Nagendra (Articleship) (38 Points)

04 February 2013

Hi Friends,

Is it mandatory for deduction of TDS on Reimbursment of expenses along with Professional charges?

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2 Replies

Ritesh Surana (Article Assistant) (49 Points)
Replied 04 February 2013

Dear Nagendra,

TDS cannot be deducted on expenses reimbursed but however TDS should be deducted on Professional Fees paid u/s 94j.

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Deepak Gupta (CA Student) (15922 Points)
Replied 04 February 2013

Originally posted by : Nagendra
	Hi Friends, Is it mandatory for deduction of TDS on Reimbursment of expenses along with Professional charges?

TDS on reimbursement is required to be made if a single bill is raised for the professional fee inclusive of reimbursement of expenses. In such case cases TDS is to be deducted on the gross amount i.e. on the aggregate amount of professional fee and amount of reimbursement of expenses.

Q.30 of Circular: No. 715, dated 8-8-1995.
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However, TDS is not required to be deducted on such reimbursement of expenses where separate bills are raised for professional fee and for reimbursement of actual expenses duly supported by expense bills.