Tds applicability
This query is : Resolved
C.A. Sandeep Wawhal
(Querist)
20 July 2019
Dear Experts,
we have imported some materials and payment made to our freight and forward agent but he issued invoice with corresponding supporting documents on which third party also mention name of our companh and not of CHA and GST Credit given to us. Now we are making payment to our CHA as reimbursement of expenses and no tds deducted accordingly. I want to know whether is it correct ? I guess TDS is deductible by us bcz third party has issued invoice in our name.
Regards,
we have imported some materials and payment made to our freight and forward agent but he issued invoice with corresponding supporting documents on which third party also mention name of our companh and not of CHA and GST Credit given to us. Now we are making payment to our CHA as reimbursement of expenses and no tds deducted accordingly. I want to know whether is it correct ? I guess TDS is deductible by us bcz third party has issued invoice in our name.
Regards,
CA Anita Bhadra
(Expert)
20 July 2019
Your Guess is right
As third party raised bill in your name and CFA must have not deducted Tax at source , You need to deduct TDS under sec 194(C)
It has been held in case of Assistant Commissioner of Income-tax, Circle-1(1), Panaji, Goa Vs Zephyr Biomedicals* that Freight to C&F agent wasn't reimbursement and liable to TDS as agent didn't made TDS while making payment to Airlines
https://www.taxmann.com/topstories/101010000000163424/freight-to-cf-agent-wasnt-reimbursement-and-liable-to-tds-as-agent-didnt-made-tds-while-making-payment-to-airlines.aspx
As third party raised bill in your name and CFA must have not deducted Tax at source , You need to deduct TDS under sec 194(C)
It has been held in case of Assistant Commissioner of Income-tax, Circle-1(1), Panaji, Goa Vs Zephyr Biomedicals* that Freight to C&F agent wasn't reimbursement and liable to TDS as agent didn't made TDS while making payment to Airlines
https://www.taxmann.com/topstories/101010000000163424/freight-to-cf-agent-wasnt-reimbursement-and-liable-to-tds-as-agent-didnt-made-tds-while-making-payment-to-airlines.aspx
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9 Annual Return
- Reward for festival
- Ito add credit side of bank
- Employee secondment
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Capital gain on commercial property and investment in residential property
- LLP audit and disclosure
- Rent agreement of House of deceased person
- RCM and same line
- TDS Return Statement Status
- ARCA LOGIN
- Appointment of Auditor By Form ADT-1
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
