Urgent tds query

TDS IS TO BE DEDUCTED ON THE AMOUNT WHICH IS BEING CREDITED TO PARTY AC, FOR PAYMENT

if seprate column is given for remibursement with supporting then not deducted TDS on the same but for this check all supporting

if combined bill given not made any sepration for reimbursement then tds should be ducated on whole amt of bill

if possible ask your c& f agennt give separte bill for reimbursement

Payments to Clearing and Forwarding agents for carriage of goods are subject to TDS. The Clearing and Forwarding agents themselves are also liable to deduct tax on payments to a carrier of goods

TDS has to be deducted under section 194C for contract work. In case the CHA gives combined bill for reimbusements and service charges, TDS has to beducted on whole bill.

However,if separate debit note is issued for reimbursements and service charges bill is issued separately then TDS is applicable on the bill amount only and not on the debit note

TDS IN UR CASE IS TO BE DEDUCTED  ON GROSS AMOUNT U/S 194C.

Agree with Valji, a practical guy.  Any reimbursement claim with proper supporting documents no need to make TDS.

Dear Manik, Please refer to circular no. 715 dated 8 aug 1995. According to the circular reimbursement of expenses cannot be deducted from the total amount of bill for the purpose of deduction of TDS. Please also refer to Willmar Schwabe India(p) ltd. Vs. ITO where the delhi bench of Income tax Appellate Tribunal examined the scope of above mentioned circular.  It was held that reimbursement  of expenses for which bill is separately raised did not attract deduction of TDS u/s 194J.

Following points to be noted.

1. TDS deductible on gross amount if consolidated bill was raised inclusive of service tax if any.

2. No deduction of TDS deductible if separate invoice raised for reimbursement of expenses.

Originally posted by : amitmehta_ca
	Dear Manik, Please refer to circular no. 715 dated 8 aug 1995. According to the circular reimbursement of expenses cannot be deducted from the total amount of bill for the purpose of deduction of TDS. Please also refer to Willmar Schwabe India(p) ltd. Vs. ITO where the delhi bench of Income tax Appellate Tribunal examined the scope of above mentioned circular.  It was held that reimbursement  of expenses for which bill is separately raised did not attract deduction of TDS u/s 194J. Following points to be noted. 1. TDS deductible on gross amount if consolidated bill was raised inclusive of service tax if any. 2. No deduction of TDS deductible if separate invoice raised for reimbursement of expenses.

 agreed

  If  the expenses mentioned in the bill 'SEPARATELY' 

      then no TDS deduct on Reimbursment of Expenses.

If  the expenses 'NOT' mentioned in the bill 'SEPARATELY' 

      then TDS deduct on GROSS AMOUNT.        

tds in maid only on net amt +service tax not on expenses on which reimbursement is maid