C & F Agent (TDS ?)

This query is : Resolved

Guest

Guest (Querist)

23 October 2008 Dear Experts

As per section 194C, any payments made to C & F Agent is subject to TDS.

However payments to the C&F Agent include following;
1. Reimbursement in respect of various custom formalities etc. inclg freight (Say Rs. 10,00,000/-)
2. his C&F charges (Say. Rs. 75000/-)
3. Total is Rs. 10,75,000

Case 1 - Now suppose he has raised single invoice for both 1 & 2 above, then on which amount TDS is required to be made?

Case 2 - Whether it will make any difference if C&F agent raises debit note for above 1 & his invoice for above 2.?

As per my opinion

Case 1- TDS is required to be made on whole i.e. on Rs. 10,75,000/-
Case 2 – TDs is required to be made only on Rs. 75000/-

Please give your expert opinion…

CA Rohit

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 October 2008 No TDs on reimbursment
only TDS shold be sharged on Commission & service tax.

Please Demond Sepret Invoice for Commission & seperet Invoice for Reimbursment.

SANJAY VERMA

SANJAY VERMA (Expert)
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23 October 2008 agree with ram

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