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TDS

Geetha.K (Accountants Officer) (118 Points)

22 August 2008

We received the reimbursement of airfare bills of one of our consultant.It's around 70,000/- .

We are paying through cheque in the name of his Company.

Here TDS is applicable or not ?

Please guide me

Thanks in advance

Geetha

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5 Replies

CA MOHIT VAATS (Consultant) (554 Points)
Replied 22 August 2008

it shall not attract the TDS as the case of reimbursement & also on air ticket , No TDS will be deduct....

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CA S Sundararajan (CAO) (536 Points)
Replied 22 August 2008

Ms. Geetha,

TDS applicable only on Air-fare commission than ticket cost. Hence , Payment of Air-fare never attract TDS.

Geetha.K (Accountants Officer) (118 Points)
Replied 22 August 2008

Mr.Mohit and Sundarrajan

My question is we are paying to his Company , we are showing the expenditure in his A/c.and it's a income to his Comapny .right ?

venkatesh c (Audit) (63 Points)
Replied 22 August 2008

TDS will not be applicable as this is only a reimbursement of expense.

It is not an income to that company.

If the consultant claims only the actual expenditure incurred by him with the proof of bill or air tickets, TDS in not applicable. The company should claim the reimbursement in a separate bill.

m.v.naveen (article student) (33 Points)
Replied 22 August 2008

Originally posted by :Geetha.K
"	Hi We received the reimbursement of airfare bills of one of our consultant.It's around 70,000/- . We are paying through cheque in the name of his Company. Here TDS is applicable or not ? Please guide me Thanks in advance Geetha	"