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Tds on professional fees including out of packet expenses

TDS / TCS 1210 views 2 replies

Pl some one help me out this..A proffesional raised a bill for the services rendered and conveyance expenses incurred is shown separately in the same bill.While deducting TDS ,whether TDS is to be deducted on proffesional fees alone or including the conveyance expenses..(ie..Bill total amount) Do post your answers ..Thanks in advance..:)

Replies (2)
Originally posted by : Mythili
Pl some one help me out this..A proffesional raised a bill for the services rendered and conveyance expenses incurred is shown separately in the same bill.While deducting TDS ,whether TDS is to be deducted on proffesional fees alone or including the conveyance expenses..(ie..Bill total amount) Do post your answers ..Thanks in advance..:)

TDS on reimbursement is required to be made if a single bill is raised for the professional fee inclusive of reimbursement of expenses. In such case cases TDS is to be deducted on the gross amount i.e. on the aggregate amount of professional fee and amount of reimbursement of expenses.

Q.30 of Circular: No. 715, dated 8-8-1995.
.
However, TDS is not required to be deducted on such reimbursement of expenses where separate bills are raised for professional fee and for reimbursement of actual expenses duly supported by expense bills.

Due to problem in internet connection, same answer was posted twice inadvertently by me. Inconvenience caused is regretted.


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