close x


TDS in case of clearing and forwarding agents


One of the client Imports material from overseas suppliers. To take delivery of imported material, company appoint Clearing & Forwarding Agent to take delivery on their behalf. Some-times, company faces problem to deduct T.D.S. while making advance payment to Clearing & Forwarding Agent on account of Advance Payment, Handling charges, loading-unloading charges, Stamp Duty, Custom Duty, Ware House charges, demurrage charges and Agency Commission etc. As per rule, before release of advance payment, TDS amount is deductable. Though Clearing & Forwarding Agent is working on behalf of company and the said amount is paid by Clearing & Forwarding Agent, on behalf of company to various agencies on account of Handling charges, loading-unloading charges, Stamp Duty, Custom Duty, Ware House charges, demurrage charges etc. etc. My query is that how and on which rate company should deduct tax on advance payment to Clearing & Forwarding Agency for their different services, because this includes advance against expenses, which is reimbursable, and their agency charges.please give me the legal position

 
Reply   
 
Accounts Manager


Originally posted by :archana
"

One of the client Imports material from overseas suppliers. To take delivery of imported material, company appoint Clearing & Forwarding Agent to take delivery on their behalf. Some-times, company faces problem to deduct T.D.S. while making advance payment to Clearing & Forwarding Agent on account of Advance Payment, Handling charges, loading-unloading charges, Stamp Duty, Custom Duty, Ware House charges, demurrage charges and Agency Commission etc. As per rule, before release of advance payment, TDS amount is deductable. Though Clearing & Forwarding Agent is working on behalf of company and the said amount is paid by Clearing & Forwarding Agent, on behalf of company to various agencies on account of Handling charges, loading-unloading charges, Stamp Duty, Custom Duty, Ware House charges, demurrage charges etc. etc. My query is that how and on which rate company should deduct tax on advance payment to Clearing & Forwarding Agency for their different services, because this includes advance against expenses, which is reimbursable, and their agency charges.please give me the legal position

Ravindra

 

"


 

 
Reply   
 



In case of clg & fwd agents, tds is applicable only on handling / service chgs. majority of them are issuing separate bill for service chgs on which they levy service tax & for reimbursement of exp paid on behalf of party.

 

 


Total thanks : 1 times

 
Reply   
 

I have required clearing & forwarding licences  pls give me the address

Nagendra

student

 
Reply   
 

IF TDS WILL BE DEDUCT, WHAT WILL BE RATE OF TAX AND UNDER WHICH SECTION IT WILL BE DEDUCT.


Total thanks : 1 times

 
Reply   
 

what is tds rate for clearing agent and

is it contractor or professional>?

 
Reply   
 

Is tds applicable on Clearing & forwarding Charges,If clearing Agent has Pan.

If yes what is the rate of TDS

 
Reply   
 
Manager - Accounts


please tell me the TDS rate for the Clearing and Forwarding charges?

 
Reply   
 
glidor@gmail.com


Originally posted by : srikumar

please tell me the TDS rate for the Clearing and Forwarding charges?

http://www.simpletaxindia.org/2011/04/tds-rate-chart-11-12-fy-tds-rate-12-13.html

 

194C applies

 
Reply   
 
Wealth Manager


CFA (clearing forwarding agents) needs to raise a bill of reimbursement to te company stating that they (CFA) shall deduct TDS from the payments made to port/customs on their behalf. TDS will be deposited in the govt by CFA directly under their own TAN number.

And the company will deduct TDS only on the service provided by the CFA, that is agency fees.

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :