TDS ON professional

TDS have to deduct on gross amount but if the artist has bifurcate other expense than deduct tds only on professional service amount…

Originally posted by : sahilsimon
	Dear Friends, Good morning, I am a new member and this is my first interaction . I am working in a media woring as a acct. ececutive. Here we are paid vrious artist and choroegrapher , direcector for whom payment is made after deducting 10 % tds ( TDS on professional).There remn in icclusive of transportation, costumes, lodging but presently they had asked to pay the same under differnt head and deduct only TDS on remuneration part . Can you help/suggest that can deduct only on remn part or on the whole amount as we paying the whole amount to that person. reds Arun

ask the receipent to submit the sepate details with bills for transportation/ costumes/ lodging and anything extra issued in name of deductee company, and deduct the TDS on that head if applicable, then only they are eligible to get TDS on reduced portion of remunaration. 

to the extent of non submission of bills the amount would get added to their remunaration, and would be subject to TDS.

in a nutshell the company has to book expenses in diff heads by virtue of submission of bills, and deduct TDS on them ( if applicable), if the bills are unavailable then the gross remunaration paid to person would be subject to TDS.

Thanks for u r clarification,

If the deductee submit bill but payment should be made in the name of deductee as the party claim that other expenses was alreay paid by him . My question is here all expenses should be booked in his name & tds will be deducted only on the remn parn.

regd

arun

If you give separate bill for expense or bifurcate in same bill than tds will deduct only on remuneration part.

Originally posted by : sahilsimon
	Thanks for u r clarification,   If the deductee submit bill but payment should be made in the name of deductee as the party claim that other expenses was alreay paid by him . My question is here all expenses should be booked in his name & tds will be deducted only on the remn parn. regd arun

for segregation the receipent has to get bills in name of company and witheld TDS component if applicable, he may pay direct and reimburse the same from company, company will book the expenditure in appropriate head as per bill and pay to the receipent in reimbursement claim. 

but if the bills are raised in name of receipent, paid by himself, and no provision of TDS( if applicable) is made, then company has to deduct TDS from receipent adding the same in gross remunaration. 

Remember these personals are not employees in register of company, where company can book such expenses incurred by employees in course of businss. 

 if TDS is applicable and not paid, then compnay would face the music of disallowance of such expenditure, so one has to account the things in proper way. 

WHAT IS RATE OF TDS ON PAYMENT MADE TO ARTIST/DESIGNER PROVIDING DESIGN / DIAGRAM IN THE BOOKS FOR SCHOOL AND OTHERS

IS THE PAYMENT OF " OUT OF POCKET EXPENSES "IN THE NATURE OF REIMBURSEMNT ON DECLARATION BASIS IS  SUBJECT TO TDS U/S 194J AS OTHER PAYMAENT UNDER THIS SECTION

There is no need to present separate bill for the Profesisonal Fees part and the Out of Pocket Expenses Part. The person to whom you are paying can submit you a bill containing both like for example the bill may be submitted in the following format.

1. Professional Fees:          Rs. 1,00,000.00

2. Out of Pocket Exp:            Rs.     15,000.00

3. Total :                                  Rs.  1,15,000.00

This is sufficient and Tax need not be deducted on the 'Out of Pocket Expenses'

-CA. Amol G. Kabra

Originally posted by : SAPNA DAGA
	WHAT IS RATE OF TDS ON PAYMENT MADE TO ARTIST/DESIGNER PROVIDING DESIGN / DIAGRAM IN THE BOOKS FOR SCHOOL AND OTHERS

The same rate of TDS shall apply i.e. 10%.

For a detailed overview on the section you may refer my article on the same:

/articles/an-overview-of-section-194-j-of-income-tax-3926.asp