TDS on Detention/Demmurage Charges & Ground Rent

This query is : Resolved

ashwini (Querist)
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16 June 2011 Dear Sir/ Mam,

Can you tell me whether payment for Detention / Demmurage Charges & Ground Rent will attract TDS provision?

If yes, under which Sec & rate?

Also whether to consider payment as reimbursement (as Reimbursement does not attract TDS)only "receipt" is adequate or "invoice" from third party is required?

Best regards,
Ashwini

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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16 June 2011 If your forwarding agent is paying rent and claiming it as reimbursement from you the exact amount and also in the payment slip your company name is provided then tds will not be applicable.

If your forwarding agent claiming in his bill as demurages / ground rent and not disclosing the actual payment then TDS will be attracted and the rate will be as follows.

If Rent is seprately shown - Rate applicable for rental payment has to be adopted.

If total charges is provided as a consolidated bill then contract rate will be applicable.

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