TDS

This query is : Resolved

pradeep (Querist)
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17 January 2011 Is wharfage charges liable for TDS ? and if yes then who is liable for tds we or the person who is incurring the expenses on our behalf

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 January 2011 Central Board of Direct Taxes (CBDT) in the case of customers who use the space and services of a cold storage, said whether the charges/fees paid by customers to the owners of cold storage are subjected to deduction of tax at source under section section 194C of the Income-tax act, 1961. The CBDT has clarified that by usage of the space and services of a cold storage by the customers the customers are not tenants of the owner of the cold storage. The CBDT has clarified that there is a contractual agreement between the customer and owner of the cold storage for using the space and services for certain time. Hence the payments made to the owner of the cold storage for usage of space and services of the cold storage are to be subjected to deduction of tax at source under sectiion 194C.
Now in the case of the customers using "Wharfage" the circumstances are similar as in the case of customers of a cold storage. Hence the payments made for usage of wharfage are to be subjected to deduction of tax at source under section 194C