Tds on reimbursement of electricity charges

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Reimbursement of electricty expenses is done for 

a Normal electricity consumption and AD consumption

b. Diesel Generator consumption

Service tax is charged at 12.36%

What shall be the rate of deduction of TDS??

Replies (2)

THERE IS NO TDS ON REIMBURSEMENT OF EXPENSES . CORRECT ME IF I AM WRONG

If it is reimbursement, there should'nt be Service Tax, if it is on cost to cost basis. Although, I has come accross such situation where Service Tax Authorities issued notice for payment of demand on such reimbursement considering them Services.

 

But, this will not impact aplication of TDS and thus, as Soniya Ji said, in case of reimbursement, no TDS is applicable.


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