Tds

As per CBDT Circular No.715, dated 8.8.1995 it was clearly given that if re-imbursement of expences are also included in gross amount of bill tds to be deducted where as if seperate bill raised for re-imbursement of expences tds .not applicable

but in general to apply tds,

In order to address the issue whether tax is required to be deducted at source, in respect of
reimbursement of expenses, it will be necessary to keep in mind the following two aspects, viz :
(i) Tax is deductible at source under Chapter XVII-B of the Act, only in respect of payment of income
or other sum made by the person responsible for such payment, viz. tax-deductor to other person
being the tax-deductee, and
(ii) Reimbursement of expenses does not partake the nature of income in the hands of the payee of
such expenses