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No obligation to deduct TDS on amounts paid as reimbursement of expenses
Case Law Details
- Case Name
- CIT Vs DLF Commercial Project Corp (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Suraj R. Agrawal
Brief of the Case
Delhi High Court in the case of CIT vs. DLF Commercial Project Corp held that There is no obligation to deduct TDS on amounts paid as “reimbursement of expenses” because it do not have the character of income.
A) Facts of the case:
a. Assessee is in the business of developing land for commercial, residential, retail, industrial parks, information technology parks, SEZ, etc.
b. During AY 2007-08, the assessee filed its return reporting an income of ₹1,67,95,360.
c. AO added a sum of ₹ 19,09,83,236/- under Section 40(a)(ia) o...
Author Info
Dear Yogesh,
Rs. 100/- which is service tax component, on this TDS is out of question as per Circular no. 1/2014 dated 13.01.2014.
Rs. 200/- being reimbursement where voucher is taken in the name of deductor, no TDS is applicable.
Rs. 700/- being out of service, TDS is applicable.
Dear sir,
I would like to clarify few things that if a bill of Rs.1000 is given where Rs.700 is towards services rendered, Rs.200 towards reimbursement of expenses & Rs.100 toward service tax then the TDS will be deducted on Rs.700 for services rendered or Rs. 900 (700+200) because bill amounts to Rs. 1000.
Dear Sir,
My Query is that Who is responsible for deduct TDS on that expenses which one company pay on behalf other company and reimbursement the same.
Because both company if not deducted TDS, there may be loss of revenue of Income Tax Dept.
Hence i think TDS Deduct by first Company and provide TDS Certificate to deductee and same copy to other co. for proving deduction of TDS on exp. by one co. on behalf of other Co. and other co. will allowed Exp. as deduction from business Income.
If any pls. confirm
Thanks & Regards,
CMA Nitin Fatangare
[email protected]