Is TDS to be cut on reimbursement of expenses if they form part of the same bill but are shown separately in the same bill ?? For e.g :- A stat audit bill raised by a CA :- Fees for stat audit (incl ST ) 30,000 Reimbursement of out of pocket expenses 2,000 Is TDS to be cut on entire Rs. 32,000 ? or 30,000?
3 Replies
Tahseen Tabassum
(CA-FINAL)
(644 Points)
Replied 05 April 2009
Dear Kushal,
If a consolidated bill is given by a Stat. Auditor for his fees as well as out of pocket expenditure, then the entire amt. is subject to TDS. If a separate bill is givenfor reimbursement of out of pocket expenditure, then reimbursement of expenditure is not subject to tax deduction.
Refer to the Case - ITO v. Dr. Willmar Schwabe India (P) Ltd. [2005] 3 SOT 71
Tahseen Tabassum
(CA-FINAL)
(644 Points)
Replied 05 April 2009
In your example as the consolidated bill was raised just showing separately the amt of exp., hence TDS will be deducted on total bill amt of Rs. 32000/-
CA Karun Gupta
(Practicing Chartered Accountant)
(312 Points)
Replied 06 April 2009
I also fully agree with tahseen.. TDS is liable to be deducted on the whole amount [Rs.32000] in this case..
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
