Please Help: Deduction of TDS
Posted Date : 07-Jul-2012 , 02:33:13 pm | Posted By CASANSAAR
One of my client is engaged in Transportation/Logistics Business. The vehicle’s are running from Raigarh (C.G.) to Mahrastra, UP, MP, Goa, and other state. He is paying to driver as a Fixed Trip Allowances for various destination for Various Expenses made during the Transportation of goods like petrol, diesel, fooding, tool tax etc. the driver’s was not producing bills for expenses during trip. I want to know that whether trip allowances paid to driver is attracting TDS Provision or Not.?
Category : Income Tax | Answers : 2 | Comments : 0 | Hits : 211
Answers
Answer By: Vikash Kumar Jha
These expenses are related to the transporting expenses of his business that amount just reimbursement to the driver so Tds Case should not be here. TDS case will come when these bill raised to the client for which it work to the extent of my knowledge.
Answer By: Krishna Chandra Santi
Trip allowances paid to the driver against expenses will be regarded as reimbursement in nature which are not coming under the provision of TDS. So no TDS will be deducted on such allowances. If there is any commission or salary paid by the client to the driver for his services (driving) then TDS will be deducted.
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