Whether TDS should be deducted from a professional on account of bill raised for the payment of prescribed fee to various authorities on behalf of client and he does not charge anything extra from the client in his bill
Thanks !
14 Replies
Rachit
(Analyst)
(913 Points)
Replied 09 November 2011
Fees / charges paid to various authorities on behalf of the client amounts to reimbursement of expenses. Such reimbursements do not attract the provisions of Chapter XVII of the I.Tax Act
valji
(Accounts manager-MBA)
(2150 Points)
Replied 09 November 2011
reimbursement of expenses do not attract TDS if supporting attached
VIKAS GUPTA
(CA-FINAL)
(56 Points)
Replied 09 November 2011
Rachit Please Clearify
This is not reimbursement of expenses. it is payment of professional charges on behalf of Client
ashish gupta
( student)
(1922 Points)
Replied 09 November 2011
and whether TDS is applicable on fee paid to attend seminar/meetings of industry updates.
VIKAS GUPTA
(CA-FINAL)
(56 Points)
Replied 09 November 2011
Yes TDS also Applicable if fees paid to attend seminar/meetings more then 35000/-.
VIKAS GUPTA
(CA-FINAL)
(56 Points)
Replied 09 November 2011
U/S 194J (Receiving Professional or Technical Services)
ashish gupta
( student)
(1922 Points)
Replied 09 November 2011
please dont mind but can you explain it more how can it be covered under 194J. I am not saying that you are wrong but I am not sure about it.
VIKAS GUPTA
(CA-FINAL)
(56 Points)
Replied 09 November 2011
If Seminar provide any update related to Production facility, New Technolocy ect, then it is a Technical service and as per Sec 194J "As Person except Individual or HUF who is resposible for paying to a resident any sum by way of Professional or Technical Service shall Deduct 10% if amount of service more then 35000"
Rachit
(Analyst)
(913 Points)
Replied 10 November 2011
| Originally posted by : VIKAS GUPTA | ||
 |
Rachit Please Clearify This is not reimbursement of expenses. it is payment of professional charges on behalf of Client |
 |
In case of such an arrangement, I am of the view that it would be prudent for the said professional to deduct TDS from payments made to the other professionals, for services sought on your behalf. The same may be subsequently claimed as reimbursement from the client without any TDS deduction.
CS Bijoy
(Expert)
(6394 Points)
Replied 10 November 2011
Accordig to me the service provided is covered under the service tax and not under the TDS.
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 10 November 2011
Dear Mr.Bijoy,
Pls understand Service Tax charged on service by service provider and they will collect service tax from us and remitting to Central Govt . But, TDS has to deduct by service receiver from the total bill value and remit to Govt.
VIKAS GUPTA
(CA-FINAL)
(56 Points)
Replied 10 November 2011
Service Tax is a tax collection from service receiver and TDS is deduction. both are different. even in sec 194J TDS also deduct on Service tax...
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