TDS on reimbursement, Income Tax

[Venkata Kumar]

One of our contractors has submitted a  separate bill for reimbursement of Travelling expenses (lumsum amount, without vouchers)  and another bill for design and drawing reimbusement expenses (lumpsum amount, with no vouchers). Should we deduct TDS on these bills.

Please explain with case references/notification/circular.  

Posts / Replies

[GOPALJI AGRAWAL]

As per circular No 715, TDS is deductible on gross amount. If re-imbursement bills are accompied with tickets etc. then there is scope of escape.