TDS on Expenses

TDS to deducted on  Rs. 128.36(whole sum)

As per Income Tax a person has to deduct TDS on the whole amount of bill ,i.e, 128.36.

It does not matter whether it includes any type of reimbursements or any thing else.

In simple terms if the contractor gives you 1 bill inclusive of anything, you need to deduct TDS on the Gross amount of the bill.

tds will be deducted on whole sum

Agreed with teh experts..

HI ALL,

TDS IS TO BE DEDUCTED FRM WHOLE SUM.

THE DETAILS GIVEN BY YOUR CONTRACTOR TO U IS ONLY FOR U'R CLARIFICATION.

IN MOST CASES OF LABOUR CONTRACTS, CONTRACTOR WOULD BE ASKE DTO MAKE ME PAYMENT OF SALARY OF THOSE GOING TO BE EMPLOYED BY HIM FOR U'R CONTRACT AND SPECIFIED %/ SUM OF PROFIT THEREON FOR LABOUR CONTRACTOR. THE FACT THAT HE IS GIVEN BIFURCATION IS JUST FOR ADHERENCE TO THE TERMS OF CONTRACT. U R ENGAGED ONE CONTRACTOR AND SO WHATEVER PAYMENT MADE BY U TO HIM WOULD BE ELIGIBLE FOR TDS DEDUCTION.

REGARDS,

MANOJ

Agreed with the all the above opinions.

thanx to all.

Generally TDS on provisions is not needed as TDS is applicable at the time of credit to the Service provider's Account in the books or Payment whichever is earlier. In case of provision for expenses, credit is not given to the Service provider's account.

However there is one exception, for Providing the Audit fee, TDS is to be deducted being a certain laibility.

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