TDS Applicability

[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 Not Required on Pure Expense Reimbursements; Applicable if Invoice Combines Service Charges and Reimbursements. A query was raised regarding the applicability of Tax Deducted at Source (TDS) on the reimbursement of expenses when a vendor includes service tax on such reimbursements. The response clarified that TDS is not required if the payment is solely for the reimbursement of expenses. However, if the invoice combines charges for services and reimbursement, TDS becomes applicable.