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Reimbursement exp

vindhya (accountant) (92 Points)

09 May 2013

we want to know that tds about reimbursement expense with rent & salary

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Sonam Bidasaria (CA) (770 Points)
Replied 09 May 2013

TDS is not deducted on reimburesment of expense. In case, u want to knw the answer for a particular situation. the plz give the detail of the case.

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Dhara (Student CS) (859 Points)
Replied 09 May 2013

Yes Sonam is right TDS is not deducted from reimbursement of expenses.

vindhya (accountant) (92 Points)
Replied 11 May 2013

our one company do all expense including rent and transfer this expense to another company in reimbursement

all staff salary & rent expese

vindhya (accountant) (92 Points)
Replied 11 May 2013

Originally posted by : Sonam Bidasaria
	TDS is not deducted on reimburesment of expense. In case, u want to knw the answer for a particular situation. the plz give the detail of the case.

thank you for your messege

i want know about salary reimbursement of all staff

all staff salary in reimburse to another company i want to know that this enty is tds deductable or not

all staff salary go to Eg.A company then A company entry do the reimursement no B company

then tds deducted or not

Sonam Bidasaria (CA) (770 Points)
Replied 11 May 2013

There may be two situation:

Situation A - None of the company staff falls in "assessee liable to pay tax" bracket (i.e. Annual Salary is less than or equal to 200000 of each staff)

You can transfer the salary expense from one account to other.

Situation AB - Some/ All of the company staff falls in "assessee liable to pay tax" bracket (i.e. Annual Salary is more than 200000 of each staff)

From M/s A pvt ltd, you are paying Mr. X 20000 per month. At the end of the financial year, you will have to deduct TDS under Sec 192 (you may deduct earlier as well) and u deduct (240000-200000)*.1 = Rs. 4000 and paid 16000 in the month of march.

In that case, along with salary expense, you will have to transfer your TDS liabilty also to M/s B private LImited and this TDS cannot be paid from "A Pvt Ltd" account.

However, apart from this TDS, there is no other TDS issue will arise in case of reimbursement of expenses by M/s B Pvt Ltd.

I hope, i have cleared your doubt.