FW: TDS on reimbursement of expenses incurred by C&F Agent
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Kalidas Ramaswami
Jul 10, 2010, 3:35:25 AM7/10/10
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From: ramaswam...@hotmail.com
To: akaga...@gmail.com
CC: echange-pro...@googlegroups.com
Subject: RE:TDS on reimbursement of expenses incurred by C&F Agent
Date: Sat, 10 Jul 2010 09:06:54 +0530
With reference to the above query,it may be noted that as per CBDT circular No 715 dated 8.8.1995 ,reimbursement of expenses are also to be considered for application of TDS.However the delhi HC in a reported judgement(I will give you the citation on Monday)has held that reimbursement of expenses shall not be considered for TDS subject to the condition that the receipient of the payment produces proof that expenditure has actually been incurred.besides there should be a seperate bill raised for reimbursements along with proof of expenditure.if the bill is composite covering both fees and reimbursement the entire amount should be considered for deduction of tax.
regards
kalidas
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AM
Jul 11, 2010, 6:20:14 AM7/11/10
to forum4ca
The Delhi Bench of the Tribunal in ITO vs Dr.Willmar Schwabe India
(Pvt) Ltd 3SOT 71examined the scope of the circular and held that
reimbursement of expenditure for which bill is separately given did
not apply to the provisions of Section 194J. The above decision can be
applied in this case also as only actual expenditure is being
reimbursed. It is suggested that bill for services and reimbursement
of duty paid are raised separately so that the duty paid is separately
identifiable. In such a case no TDS shall apply.
An amount is chargeable to tax if it is pure income or contains some
component of income in it - Nathpa Jhakri Joint Venture v. Assistant
Commissioner of Income-tax, Circle 23(1), Mumbai [2010] 37 SOT 160
(MUM.) [IT APPEAL NOS. 35 AND 105 (MUM.) OF 2007]- When a particular
amount of expenditure is incurred and that sum is reimbursed, as such,
that cannot be considered as having any part of it in nature of income
- Nathpa Jhakri Joint Venture v. Assistant Commissioner of Income-tax,
Circle 23(1), Mumbai [2010] 37 SOT 160 (MUM.) [IT APPEAL NOS. 35 AND
105 (MUM.) OF 2007]
On Jul 10, 12:35 pm, Kalidas Ramaswami <ramaswami.kali...@hotmail.com>
wrote:
> From: ramaswami.kali...@hotmail.com
> To: akagarw...@gmail.com
> The world on four wheels in MSN Autoshttp://autos.in.msn.com/
(Pvt) Ltd 3SOT 71examined the scope of the circular and held that
reimbursement of expenditure for which bill is separately given did
not apply to the provisions of Section 194J. The above decision can be
applied in this case also as only actual expenditure is being
reimbursed. It is suggested that bill for services and reimbursement
of duty paid are raised separately so that the duty paid is separately
identifiable. In such a case no TDS shall apply.
An amount is chargeable to tax if it is pure income or contains some
component of income in it - Nathpa Jhakri Joint Venture v. Assistant
Commissioner of Income-tax, Circle 23(1), Mumbai [2010] 37 SOT 160
(MUM.) [IT APPEAL NOS. 35 AND 105 (MUM.) OF 2007]- When a particular
amount of expenditure is incurred and that sum is reimbursed, as such,
that cannot be considered as having any part of it in nature of income
- Nathpa Jhakri Joint Venture v. Assistant Commissioner of Income-tax,
Circle 23(1), Mumbai [2010] 37 SOT 160 (MUM.) [IT APPEAL NOS. 35 AND
105 (MUM.) OF 2007]
On Jul 10, 12:35 pm, Kalidas Ramaswami <ramaswami.kali...@hotmail.com>
wrote:
> From: ramaswami.kali...@hotmail.com
> To: akagarw...@gmail.com
> CC: echange-pro...@googlegroups.com
> Subject: RE:TDS on reimbursement of expenses incurred by C&F Agent
> Date: Sat, 10 Jul 2010 09:06:54 +0530
>
> With reference to the above query,it may be noted that as per CBDT circular No 715 dated 8.8.1995 ,reimbursement of expenses are also to be considered for application of TDS.However the delhi HC in a reported judgement(I will give you the citation on Monday)has held that reimbursement of expenses shall not be considered for TDS subject to the condition that the receipient of the payment produces proof that expenditure has actually been incurred.besides there should be a seperate bill raised for reimbursements along with proof of expenditure.if the bill is composite covering both fees and reimbursement the entire amount should be considered for deduction of tax.
> regards
> kalidas
>
> Subject: RE:TDS on reimbursement of expenses incurred by C&F Agent
> Date: Sat, 10 Jul 2010 09:06:54 +0530
>
> With reference to the above query,it may be noted that as per CBDT circular No 715 dated 8.8.1995 ,reimbursement of expenses are also to be considered for application of TDS.However the delhi HC in a reported judgement(I will give you the citation on Monday)has held that reimbursement of expenses shall not be considered for TDS subject to the condition that the receipient of the payment produces proof that expenditure has actually been incurred.besides there should be a seperate bill raised for reimbursements along with proof of expenditure.if the bill is composite covering both fees and reimbursement the entire amount should be considered for deduction of tax.
> regards
> kalidas
>
> Chin music and high voltage T20 action on MSN Sports Sign up now.
> _________________________________________________________________
> The world on four wheels in MSN Autoshttp://autos.in.msn.com/
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