hello friend
pl tell me whether Tds is also deducted on out of expenses or not
if there is seperate bill given, than alsoTDS deducted on out of pocket expense
pl replay urgently
Nishant Tanna (Article) (33 Points)
27 May 2010hello friend
pl tell me whether Tds is also deducted on out of expenses or not
if there is seperate bill given, than alsoTDS deducted on out of pocket expense
pl replay urgently
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 27 May 2010
Since section 194J refers to ‘any sum paid’, reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of tax deduction at source.
Circular : No. 715, dated 8-8-1995
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 27 May 2010
Reimbursement of actual expenses - Section 194C refers to ‘any sum paid’. Obviously, reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of tax deduction at source—Circular : No. 715, dated 8-8-1995.
However i do feel that if a separate bill is given for the same then TDS not deductible.
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