alok arunkumar bhagat (PRACTICING LAWYER) 03 November 2008

TDS for professional services

Hello all again,

Am new in practice and so am sending so many queries to you forum collegues!!

My question is : Whether expenses reimbursed to a Chartered Accountant other then his professional fees will attract provisions for TDS u/s 194J?? (Fees Rs. 18,000.00, Reimbursement Rs. 9,000.00 total paid Rs. 27,000.00 ITO disallowed this for not deducting TDS).

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6 Replies

Sankaranarayanan (Advocate) 04 November 2008

for expenses no need to detect the tds. so u can detect for the service only.reimbursed is purely wat the spend . for that expenses they give the details. u take the expenses to the particular realted headings.

azmathullah (Accounts Manager) 04 November 2008

Yes,

TDS to be deducted on Rs.27000/- @ 10.3%, any how I u don't want ur client to deduct the TDS on Rs.9000/- (Reimbursemen), therefore u have to submit bill to u r client.

alok arunkumar bhagat (PRACTICING LAWYER) 04 November 2008

separate bills are drawn by the CA for expenses and professional charges, still the ITO is not convinced, and disallowed the expenses for want of TDS on entire amount, i filed a CIT appeal against it!