Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2011 Hi,

wheter tds is to be deducted on various charges like documentation charges, claering charges, fright charge, detention/dumurrage charges paid by the c&f agent??

is it make any diiference if the agent on the invoice mention each amount seperately and not charge service tax on expenses incurred mentioned clearly on the fcae on invoice and taxble portion includes his commision on which he charges service tax?

further is it make any difference if he make seperate invoice for service and debit not/ or invoice for reimburesment.

Preety Parik

Preety Parik (Expert)

23 August 2011 If a single bill has been issued by the C&F agent including his commission and expenses, TDS has to be done on Total Amount. If separate debit note is issued for expenses, TDS shall not be applicable. It is always safe to keep record of all bills of expenses incurred by the agent on your behalf.

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2011 BUt the C&F agent clearly mentioned the amounts on which service tax is applicaple (i,e, commission) and the expenses on which ST is not applicaple(i.e expenses reimburesed, freight , detention, demurrage etc) in columnar form on the face of invoice. Then its apparent from invoice also amount asked as reimbursemnet and his commission. Even the TDS applicablr for the whole amount as the very purpose of seperate note i.e. identification of amount claimed as expenses is evidenced from original invoice itself. First column of invoice reflects the amount of expenses on which service tax is not charged and second column give amount of commission etc., on which service tax is charged.

Kindly provide answer after considering circular 715 and therafter change on TDS on transportation.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 August 2011 For reimbursement of expenses need to be raised debit note along with bills. in case raised invoice itself the TDS will apply on gross value of bill

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