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TDS in case of reimbursement of expense

BINAYAK (Management Consultant) (104 Points)

27 August 2010

hi,

I have received an invoice for claiming reimbursement of expense for some contractual services. now am i liable to deduct TDS on such bill before payment to the party or not

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4 Replies

s.vaidyanathan (CA ) (119 Points)
Replied 27 August 2010

Hi friend

Reimbursement of Expenses generally does not attract tds

S.V

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Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 27 August 2010

Dear BInayak

Pls refer below written link for your refference ....... i think your doubt will be cleared after reffering it

/forum/re-tds-u-s-194c-vs-u-s-194j-62402.asp

Regards

Madhusudan

Govind Rathore (CA Final) (543 Points)
Replied 27 August 2010

Mr, Binayak

Reimbursment will not attract TDS as far as my knowledge is concern

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 27 August 2010

Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.

Madhusudan