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Discussion > Income Tax > TDS >

TDS in case of clearing and forwarding agents

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ca

[ Scorecard : 27]
Posted On 13 May 2009 at 17:01 Report Abuse

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


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Ravindra
Accounts Manager

[ Scorecard : 62]
Posted On 26 November 2009 at 10:05

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

 

"


 





NJR..
Practice

[ Scorecard : 341]
Posted On 26 November 2009 at 16:56

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



nagendra
practice

[ Scorecard : 25]
Posted On 31 December 2009 at 14:53

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

Nagendra

student




Ajay Garg
CA FINAL

[ Scorecard : 101]
Posted On 27 June 2010 at 08:13

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



Total thanks : 1 times



Prakash Kumar Singh
Artical Clearck

[ Scorecard : 77]
Posted On 15 July 2010 at 17:27

what is tds rate for clearing agent and

is it contractor or professional>?




Abhilasha
Accountant

[ Scorecard : 24]
Posted On 04 February 2011 at 15:05

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

If yes what is the rate of TDS




srikumar
Manager - Accounts

[ Scorecard : 23]
Posted On 13 July 2011 at 17:06

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




U S Sharma
glidor@gmail.com

[ Scorecard : 19381]
Posted On 13 July 2011 at 23:21

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




Mihir
Wealth Manager

[ Scorecard : 4617]
Posted On 14 July 2011 at 10:57

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.



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