04 July 2007
The Department of Revenue, Ministry of Finance has issued clarification on various issues relating to TDS in the form of Questions and Answers vide Circular No. 715 dated 08-08-2005. The solution to the query could be found in answer to question no. 6 of the Circular. The relavent portion is quoted below.
"As regards payments made to clearing and forwarding agents for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act."
Based on the above, payments made to clearing and forwarding agents for CARRIAGE OF GOODS is liable to TDS u/s. 194C - in my opinion.