TDS on reimbursable expenses

[RAMA KRISHNA KNVS]

we use transport services for moving our goods to various states. sometimes transporters will be arranged by our cnf agents at various states and even pay them off at their location and later they get it reimbursed from us. now issue is whether such reimbursments are subjectable to TDS or not..

experts plz help me on this. thanks in advance

[Ganeshan Kalyani]

In my opinion TDS is not applicable on reimbursement.

[Karthik Kumar N]

Dear sir yes for reimbursement of expenses TDS will not applicable..but if there no proof of attachment for such reimbursement than deducting TDS will be safer side..

AI Summary

TDS on reimbursements: genuine expense reimbursements typically not subject to TDS, but lack of proof warrants deduction. Reimbursed transport expenses paid via CNF agents are not subject to TDS when they are genuine pass through payments supported by documentary proof of the expense and payment. If supporting evidence is lacking, the payer should consider deducting TDS to mitigate evidentiary risk and potential recharacterisation of the reimbursement as taxable payment.