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 ????
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.
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.
CAclubindia
