Tds on re-imbursement of expenses

CA Karan Lodhi (CA and B.com(hons.)) (879 Points)

31 January 2013  

Dear Experts,

 

Please resolve my following queries :

 

Our client has organised a dealer event wherein all dealers will be met and our client will do some expenditure on organising the event and will get reimbursement of expenses done by our client.Following cases are told by my client :

 

1) hotel charges for room,food and beverages will be paid by my client to the hotel and my client will then get reimbursement of charges paid.

 

2) my client will arrange tickets for the dealers viz. air tickets,railway tickets, bus tickets.

 

3) client will hire talent,stage set ups and will arrange entertainment etc. the expenses of which is first paid by my client then he(my client) will get reimbursement of such amount paid.

 

My client will add 15 % to the cost incurred by him as his commission.

 

My question is that whether TDS needs to be deducted in the above cases and at what rate, under which section and on which amount i.e on total cost or on total amount(cost plus 15%) ??

 

Please help me...its urgent