TDS deduction on ocean freight

This query is : Resolved

Ravi Jagetiya(CA Final) (Querist)
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14 November 2009 is there any liability to deduct TDS on ocean freight which was paid by C&F. He includes ocean freight in his invoice.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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15 November 2009 No TDS on Foreign shipping Co. & his authorized agent.

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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15 November 2009 My client reimburses ocean freight to C& F, who ultimately pays it to indian shipping line, So in this case TDS should be deducted by my client ????

Ram Avtar Singh

Ram Avtar Singh (Expert)
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15 November 2009 if your are paying to Indian company then TDS applicable on that reimbursment.under sec 194C.

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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15 November 2009 Now as a matter of fact i would like to know that whether TDS is applicable on reimbursement also.
Let us take an example:
C& F charges is to the tune of Rs. 1000.
Expenses reimbursed by my client to him includin g of ocean freight is amounting to Rs. 500000.00.
Hence for the totla bill charged by C&F is for Rs. 501000.
So should my client deduct TDS on 500000 also which is not part of
C&F income.. Please through shed on the issue of TDS on reimbursement.

Thanks

CA SHIV SHANKAR KHUDANIA

CA SHIV SHANKAR KHUDANIA (Expert)
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16 November 2009 In your case No TDS Liability on Rs. 1000/- since this relates to reimbursement of expenses and your client is acting as a agent on behalf of third party. one thing which you need to do is, get a invoive from C& F agent which mention the reimbursement seperately.

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