Tds on reimbursement of expenses, Income Tax

[MANOJ K. MODI]

Dear Sir, In case contractor issues two bills seperately, one for his service charges and other is for reimbursement of expenses incurred by him. Please note contractor is charging service tax on reimbursement bills also. Question is whether the person making payment is liable to deduct TDS, u/s 194C, on reimbursement bill.

Posts / Replies

[V Ramanujam]

TDS u/s 194C is to be applied on entire payment including reimbursement bill. Refer CBDT Circular No.715 dt 8.8.1995 - Question No.30

[Manoj Sharma]

For Sec 194J , if professional has submitted seperate bills / claim for reimbursement like clearkage etc., TDC i s not deductable . This is as per decided case. Manoj