TDS on Profesional Fee

[Asked by 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 on professional fee: reimbursements with documentary evidence excluded; otherwise whole invoice considered for TDS.
TDS is to be deducted on the professional fee component only; reimbursable expenses supported by documentary evidence for the claimed amount are excluded from the TDS base, while in the absence of such supporting documents the entire invoice amount shall be considered for deduction of tax at source.