Clearing & forwarding

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 We have received bill from our C & F Agent as Follows in 4 parts

Part 1:
Shipping Company Charges(Reimbursement)
CFS Yard Charges(Reimbursement)
Stamp Duty(Reimbursement)
Empty Container Insurance Charges(Reimbursement)
Custom Duty(Reimbursement)
Empty Container Unloading Charges-Empty yard(Reimbursement)

Below this is written:
*This is Debit Note* * No TDS should be deducted*
------------End of 1st Part--------------

Part 2:
Agency
Add: Service Tax

-------------End of 2nd Part-------------

Part 3:
Sundry Charges

-------------End of 3rd Part-------------

Part 4:
Transport

-------------End of 4th Part-------------

My question is how is accounting done for this?
Also, on What amount TDS must be deducted?

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 yes,
generally, out of amount paid to c&f agents major amount was re-imbursement of expences so tds no need to deduct on this amount.(as it is not an income to the payee)

tds is applicable on service charges claimed by c&f agent

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Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 Please let me know the accounting part of it.

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013
2)agency chgs a/c dr
ST a/c dr.
ed.cess dr
sec.ed.cess dr.
to c&f agent

c&f agent a/c dr
to tds payable co./non co.(at rate applicable 2/1)

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 What should we treat the Sundry Charges?

And you mean we must deduct TDS for only Part 2...

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 u have to deduct tds on sundry charges also,
pass entry as appliable

for transportaion understand nature of payment and ofcourse

TDS maynot be applicable but can include in tds returns

https://www.caclubindia.com/articles/inclusion-of-transporters-details-in-tds-returns-are-mandatory-17543.asp

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 On what basis do we deduct on Sundry Charges?
I mean under which section and Why?

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 tds on contractor only will be applicable
194C

at rates applicable

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 But we need to Deduct Agency Charges as Professional Charges i.e., Sec 194J.

Ganeshbabu K

Ganeshbabu K (Expert)
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15 May 2013 if you are confident that those services are in the definition of 194J you deduct as per that

but in general C&F agents are covered under 194C

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