CA Student
15927 Points
Joined May 2011
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Originally posted by : Mythili |
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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..:) |
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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.
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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.