Tds on reimbursement charges

No there is no need to include the reimbursement amount in the TDS calculation. 

Deduct TDS only on the expense related to the training itself (ie the service component).

If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount.

If separate bills -
1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R.
2. Bills of expenses to reimburse are in your company's name - no TDS

Originally posted by : Manish
	If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount. If separate bills - 1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R. 2. Bills of expenses to reimburse are in your company's name - no TDS

Sorry but that is incorrect. Lazy auditors keep making this claim but there is no rule that requires the entire invoice to be subject to tds.

Originally posted by : JJJ
	Originally posted by : Manish If it is a single bill for fees and reimbursements - TDS u/s 194J on the total amount. If separate bills - 1. Bills of expenses to reimburse are in the consultant's name - TDS u/s 194R. 2. Bills of expenses to reimburse are in your company's name - no TDS   Sorry but that is incorrect. Lazy auditors keep making this claim but there is no rule that requires the entire invoice to be subject to tds.

Please check question no. 30 in income tax circular no. 715, dated 08-08-1995