On which amount we will deduct TDS? Professional Fees + Traveling or Only professional Fees? - CiteHR
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Mr. Rajendra
TDS liability arise only on INCOME, and not on expenses which reimburse, suppose i incurred 5000 towards expenses and some one reimburse me that amount in that case what i gain and what i loos? nothing why income tax liability arise on that amount.
Therefor always TDS consider on income and not on reimbursement of expenses.
Mitesh Pathak

Whether bill is split or not, TDS has to be made on out of pocket expenses like travelling.etc. If a person raises 2 seperate bills. say 50000/- towards professional fee and another bill for Rs.10000/- towards out of pocket expenses, TDS @ 10% needs to be deducted on Rs. 60000/- If PAN number is furnished. If PAN number is not furnished, TDS has to be deducted @ 20% on Rs. 60000/-. Section 194J clearly states TDS has to be deducted on any sum paid towards services covered under this section (194J).
Regards
Ravindra

not necessary for two separate bills it is all about who you make accounting entry, if you taken whole amount in Professional COnsulting than you have to deduct TDS on whole amount, but basically this entry wrong, becase it comprise two expenses one professional consulting and second Traveling expenses, therefore one entry you have to taken in consulting expernses and secnd entry taken in traveling expenses no matter consultant has issued one bill important thing is he has to shown both expenses separate in bill and service charge consider only on professional fess and not on whole amount.
Mitesh PAthak

Can i know what is the percentage of deduction of tax from professional fee.Will TDS Rates changes for every Finance year
can i know what is the percentage of incometax deduction from professional fee.Will there be any changes in rates for this Finance year.
TDS is applicable on the gross amount paid to consultant. Please read section 194J carefully. If the travelling expenses paid to consultant is a fixed sum every month or quarter,etc, then TDS has to be deducted on the travelling expenses paid to him also. If it is paid as actual re imbursement, then TDS deduction is not applicable.
Actual reimbursement means:
The consultant should have actually incurred the expenses. Supporting bills and vouchers have to be produced. Comapny should have paid only actual expenses incurred and claimed by the consultant.Then only there is no need to deduct TDS. Other wise TDS is very much applicable on travelling expenses paid to consultant also( i.e Rs. 75000/- plus 15000/-).
Ravindra

Thanks to all having this discussion.
I am willing to know that if any professional getting 90,000 per month as professional fees.
then how much total tax, he will be pay including service and other tax or how much amount he will be get in hand.

SIRS, I AM CHARGING MY CLIENT ACCOUNTING FEES OF RS. 40,000/- I GET AMT. AS 10000/- QUATERLY FOR 4-TIMES, SO TDS WILL DEDUCT OR NOT
sir in April professional fees bill received 15000 /- and after december professional fees bill receive. what i do for TDS deduction.
sir in April professional fees bill received 15000 /- and after december professional fees bill receive 25000/-. what i do for TDS deduction. how i show in TDS return . 35000/- is total amount and tds deducted. but what about 15000/- april amount interest. pls reply.

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