TDS on reimbursment of expenses, Income Tax

[venkatesh B]

Please provide whether TDS to be deducted or not in following cases

1.In a contract Expenses are Reimbursed Without Separate Bill

2.In a contract Expenses are Reimbursed with Separate Bills

3.For a Professional Service, Expenses are Reimbursed Without Separate Bill

4.For a Professional Service, Expenses are Reimbursed With Separate Bill.

Posts / Replies

[Ganeshan Kalyani]

1 & 3. Tds will be deducted on entire amount. 2 & 4 Tds will be deducted on bill amount and reimbursement is not liable for tds subject to supporting documents are available. Further they are case laws which supports that TDS should not be deducted on reimbursement portion provided the amount does not have any profit element.

[MARIAPPAN GOVINDARAJAN]

Reimbursement of expenses are not liable to TDS, in my view also.