is TDS on reimbursement of transportation charges will attract or not.
3 Replies
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 28 October 2009
Dear Dilip,
Reimbursement of transport charges does not attract TDS.The logic is that the person to whom you are reimbursing the expense may in turn pay it to different people and they may not cross the TDS limit.
sanjay kumar
( tax consultant)
(90 Points)
Replied 28 October 2009
TDS APPLIES TO INCOME OR ASSUMED INCOME ....REIMBURSEMENT OF EXPENSES IS PAYMENT TOWARDS EXPENDITURE ALREADY INCURRED ,WHICH IS AS PER ACTUAL EXPENDITURE HENCE THE VERY CONCEPT OF INCOME , REAL OR ASSUMED IS NOT THERE ,THEREFORE THE PROVISIONS OF TAX DEDUCTED AT SOURCE SO FAR REIMBURSEMENT OF TRANSPORT EXPENSES IS CONCERNED IS NOT ATTRACTED.
SANJAY
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