TDS on reimbursment of expenses

[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.

AI Summary

Debate on TDS Applicability: Should Reimbursed Expenses Be Taxed? Contracts and Professional Services Examined. A discussion on a forum addressed whether Tax Deducted at Source (TDS) should be applied to reimbursed expenses in various scenarios. The queries involved contracts and professional services, with expenses reimbursed either with or without separate bills. One participant stated that TDS should be deducted on the entire amount when no separate bill is provided, and only on the bill amount when separate bills are available, provided there are supporting documents. Another participant agreed that reimbursements are not liable for TDS, emphasizing the absence of a profit element in the reimbursement.