Tds on reimbursible exp invoice without any supportings
navin pujara
(Querist) 11 July 2014
This query is : Resolved
One of the professional is charging consultancy fees on the basis of per day and separate invoice for travel expenses at fixed rates and without any supporting of travel expenses claim. Would like to know provision related to TDS i.e. whether to deduct TDS on travel expenses reimbursement invoice or not as 10% deducted on invoice of professional fees.
uttamtibrewal@yahoo.com
(Expert) 11 July 2014
dear navin ...
its he is not providing supporting documents yes you can deduct ... for any legal query you are always welcome.
Anirudh
(Expert) 11 July 2014
Dear Navin,
Even if the advocate gives the supporting voucher for travel, hotel etc., still you have to deduct TDS.
Please do not treat the same as mere reimbursement, as it is not mere reimbursement.
This is because, but for undertaking the travel and staying in the hotel etc., he could not have rendered the legal service to you. Therefore, whether or not he gives you the supporting vouchers, you have to treat the entire fee (legal fee + travel + hotel actual expenses) as professional fee and deduct TDS at the applicable rate.
Pure Reimbursement is those kind of expenses like - when he had gone to attend a hearing say at Mumbai, and you asked him to bring something for your office from Mumbai and he presents a invoice for that item purchased for your office. That is pure reimbursement. It is an additional thing which he does at your request and cost. That is pure reimbursement. Other things (which are necessary and connected to the rendering of his service) are not pure reimbursements.
