TDS Applicability

[Asked by Guest]

Dear Sir/Madam,

Is TDS applicable on reimbusement of Expenses if vendor charges service tax on reimbursement?

[deepak gulati]

If it is only reimbursement of Expenses then No TDS is required. If the invoice is consolidated for service and reimbursement than TDS is applicable.

AI Summary

TDS applicability on expense reimbursements: pure reimbursements not subject to TDS, consolidated invoices attract TDS.
TDS applicability depends on invoicing: pure reimbursements invoiced solely as reimbursements are not subject to TDS, whereas a consolidated invoice combining services and reimbursements renders the invoice amount subject to TDS withholding because the reimbursement is not separately identified and effectively forms part of the payment for services.