If the payments made u/s 194j, are reimbursed... it is pure reimbursement... is the payment liable to tds? pls reply with relevant sections
3 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 25 April 2012
Please explain your case clearly in detail, so that proper advise can be given.
satpal
(accountant/student ICWA - FINAL )
(200 Points)
Replied 25 April 2012
With Reference to circular no. 715 dated 08.08.95 , reimbursement of expenses ' for which bill is separately raised did not attract the provisions of section 194J'
Answer to your reply complete.
However ,
In my view only actual reimbursement of expenses is allowed in this exception .
In case you pay any expense whatever name may be which are not actual expense are not covered in this exception .
e.g. DA to engineers of the errector company ( @ Rs .2000 per day per person ) seperately
In case two you are advised to deducted the TDS on the whole amount even the seperate bill is raised.
satpal
(accountant/student ICWA - FINAL )
(200 Points)
Replied 25 April 2012
With Reference to circular no. 715 dated 08.08.95 , reimbursement of expenses ' for which bill is separately raised did not attract the provisions of section 194J'
Answer to your reply complete.
However ,
In my view only actual reimbursement of expenses is allowed in this exception .
In case you pay any expense whatever name may be which are not actual expense are not covered in this exception .
e.g. DA to engineers of the errector company ( @ Rs .2000 per day per person ) seperately
In case two you are advised to deducted the TDS on the whole amount even the seperate bill is raised.
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