CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
05 September 2012
Whether tax is deducted on reimbursement of expenditure.
Please provide the extract of provision or any current case laws on the said topic.
Experts please guide....
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 05 September 2012
This is a common query and is very widely debated too.
The Delhi Bench of ITAT has held in 2005 that reimbursement for which a separate bill is issued, there need not be TDS.
However section 194C and 194J uses the words "any sum paid" to the deductee for TDS.
Therefore if a consolidated bill is given then the entire amount is attracted otherwise not.
Regards,
CA Ram
(CA)
(310 Points)
Replied 05 September 2012
This is a common query and is very widely debated too.
The Delhi Bench of ITAT has held in 2005 that reimbursement for which a separate bill is issued, there need not be TDS.
However section 194C and 194J uses the words "any sum paid" to the deductee for TDS.
Therefore if a consolidated bill is given then the entire amount is attracted otherwise not.
Regards,
CAclubindia
