We are the exporter and pay amount 52000/- to aur CHA as per his debit note in which Rs. 40000/- is the amount which related to forwarder paid by CHA on behalf on us and already deduct TDS on this amount(i.e.40000/-)
then my question is that 1.on what amount we deduct TDS on full amount 52000/- or 12000 /-.
2.If we deduct TDS on RS. 52000/- then Rs.40000/- duly taxed first taxable for CHA and afterwards TAX paid by us
15 October 2012
but sir as per below circuler and case they turn this query in other direction:
a] Clarification by Circular No. 715, dt. 8-8-1995: Circular No. 715, dt. 8-8-1995 has clarified that sections 194C and 194-J refer to any sum paid. So, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source. b] Supreme Court decision in the case of Associated Cement Co. Ltd. v. CIT (1993) 201 ITR 435: The Department often relies on the Supreme Court decision in the case of Associated Cement Co. Ltd. v. CIT (1993) 201 ITR 435 (SC) wherein in was held that section 194C does not permit exclusion of amount of reimbursement of actual expenditure incurred by the payee for getting the work completed.
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