TDS on Profesional Fee

[Guest]

Sir,

In case a Professional along with profession Fee charged travel expenses incurred by him for that specific purpose.

Eg; Prof Fee - 50,000

travel expenses - 500

total - 50,500

Whether TDS is to be deducted on ₹ 50,000 or ₹ 50,500?

[DR.MARIAPPAN GOVINDARAJAN]

The travel expenses is a reimbursible one. TDS is to be deducted on professional fee only.

[Ganeshan Kalyani]

There has been an audit point raising concern that if the reimbursement claim is supported by a documentary evidence of the same value as that has been claimed in the invoice then it has to be excluded for the purpose of deduction of tax deducted at source. Thanks.

[Ganeshan Kalyani]

In the absence of any supporting document of the amount of reimbursement claimed in the invoice, then the entire invoice amount shall be considered for the purpose of deducting TDS. Thanks.

AI Summary

TDS Deductions: Apply Only on Professional Fees, Exclude Reimbursed Travel Expenses with Documentation; Otherwise, Deduct on Full Amount. A query was raised regarding the deduction of Tax Deducted at Source (TDS) on professional fees and associated travel expenses. The question was whether TDS should be deducted on the total amount, including travel expenses, or just the professional fee. One response indicated that TDS should be deducted only on the professional fee, as travel expenses are reimbursable. Another response highlighted that if the reimbursement is supported by documentary evidence, it should be excluded from TDS calculations. However, if no supporting documents are provided, TDS should be applied to the entire invoice amount.