Applicability of tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2015 Dear sir,

There is a reimbrusement towards the cargo services. The invoice is raised from Clearing & forwarding agent. The bill is towards

1. Container maintenance charge Rs. 8800
2. Cleaning charges Rs. 5600
3. Import documentation charges Rs. 4250
4. Container Inspection fees Rs. 1600
Total Rs. 20250
ST @ 14% 2835
Total including tax 23085

My issue. whether TDS is applicable for the above expneses. if so what is the provision applicable.

regards,

R. gurucharan.

Nitin Bhuta

Nitin Bhuta (Expert)

31 October 2015 TDS would be applicable u/s 194C of the Income Tax Act 1961 because as a Service Provider he has levided 14% Service Tax on the invoice raised to you

SUDHIR KUMAR JAIN

SUDHIR KUMAR JAIN (Expert)

13 November 2015 If the clearing agent is seeking reimbursement of expenses incurred by him on your behalf or deposited with the authorities, then he should not charge service tax on those expenses. But he should provide the receipts issued by authorities in your name. Then you are not required to deduct TDS on those amounts. Otherwise total amount charged becomes liable to TDS except service tax component.

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