TDS on out of pocket Expense

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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

Replies (3)

Ya. TDS to be made...........

 

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

 

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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