Dear Friends,
On Payment of Consultant Fees to Consultant with Conveyance ,whether TDS has to be deducted on Whole amount( i.e) Inclusive of Conveyance or only on actual consultants fees? Pls give ur suggestions
13 Replies
CA. RUPESH JOSHI
(Chartered Accountant)
(174 Points)
Replied 08 December 2010
If the consultants bill is a composite bill and conveyance charges forms part of it then TDS is required to be deducted on the whole amount.
On the other hand if a separate bill for conveyance / out of pocked expenses is given, then there is no TDS liability attached to it.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 08 December 2010
As per section 194J Any person who is responsible for paying to a resident any sum by way of fees for professional services, or fees for technical services or roaylty shall deduct tax at source @ 10% if the total amount during the financial year exceed Rs. 20,000/-.
TDS shall be deducted at the time of credit of such sum to the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode withever is earlier.
Reimbursement of Expenses:
The Delhi bench of the Income Tax Appellate Tribunal in ITO V. Dr. Willmar Schwabe India (P.) Ltd. held that reimbursement of expenses for which bill is separetaley raised did not attract the provision of section 194J.
Accordingly, if the separete bill is raised for out of pocket expenses or reimbursement of expenses, it would not subject to TDS.
However, if a consolidated bill is raised then the TDS would be deducted from the gross amount. The amount of reimbursement would not be deducted from the bill amount.
Paresh Rathod
(CA)
(222 Points)
Replied 08 December 2010
| Originally posted by : CS Ankur Srivastava | ||
 |
As per section 194J Any person who is responsible for paying to a resident any sum by way of fees for professional services, or fees for technical services or roaylty shall deduct tax at source @ 10% if the total amount during the financial year exceed Rs. 20,000/-. TDS shall be deducted at the time of credit of such sum to the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode withever is earlier. Reimbursement of Expenses: The Delhi bench of the Income Tax Appellate Tribunal in ITO V. Dr. Willmar Schwabe India (P.) Ltd. held that reimbursement of expenses for which bill is separetaley raised did not attract the provision of section 194J. Accordingly, if the separete bill is raised for out of pocket expenses or reimbursement of expenses, it would not subject to TDS. However, if a consolidated bill is raised then the TDS would be deducted from the gross amount. The amount of reimbursement would not be deducted from the bill amount. |
 |
Agree with Ankur
nandha
(Finance Executive)
(53 Points)
Replied 08 December 2010
Point to be Noted: With Effect from 01st July 2010 the applicable amount for Deducting TDS on Profession has been increased from 20000/- to 30000/-.
Regards
Sridhar.
Manish Dwivedi
(Senior Accounts Executive)
(56 Points)
Replied 08 December 2010
Agree with CA Rupesh Joshi........
lalan Sharma
(Accounts Executive)
(76 Points)
Replied 05 May 2012
sir
for the month of march , i have credited professional fees in april -12, and payment is also in april -12 then what will be last date to deposit tds , reply soon plz....................
lalan Sharma
(Accounts Executive)
(76 Points)
Replied 05 May 2012
sir
for the month of march , i have credited professional fees in april -12, and payment is also in april -12 then what will be last date to deposit tds , reply soon plz....................
DIBYENDU
(SERVICE)
(266 Points)
Replied 05 May 2012
If you credited & paid provided service by the way of professional & technical fees on April 2012, then TDS deducted on said professional & technical fees deposit to central government account is next 7day of May 2012, without pay Interest.
Recent Topics
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
Related Threads
CAclubindia
