Tds on c & f invoice...
This query is : Resolved
02 February 2012
For Eg: INVOICE FROM C & F--
Reimbursement 1
Reimbursement 2
Reimbursement 3
Total(1-3) ***
+
Fees of C&F ***
(15% on Total)
=
Bill Amt. ****
Question is,
Whether we should deduct TDS on Fees only or on Whole Bill Amt.
Thanks & Regards,
Reimbursement 1
Reimbursement 2
Reimbursement 3
Total(1-3) ***
+
Fees of C&F ***
(15% on Total)
=
Bill Amt. ****
Question is,
Whether we should deduct TDS on Fees only or on Whole Bill Amt.
Thanks & Regards,
02 February 2012
Only on the amount of Fees of C&F...
Message likes :
1 times
02 February 2012
Can u pls. provide me the link through which i can prove this & document the same....
03 February 2012
My opinion, your case TDS need to deduct total bill value. since the agent raised combined bills.
Incase reimbursement bills raised separately then only service charge liable to TDS
Incase reimbursement bills raised separately then only service charge liable to TDS
04 February 2012
Who's opininon to follow?????
Pls. reply who one has 100% correct ans.
Pls. reply who one has 100% correct ans.
27 July 2025
For **TDS on C\&F (Clearing & Forwarding) agent invoice**, here’s the general practice:
---
### What to Deduct TDS on?
* **TDS should be deducted only on the 'Fees of C\&F' part**, NOT on the total bill amount including reimbursements.
---
### Reasoning:
* Reimbursements are amounts paid on behalf of the company, like freight charges, octroi, or other expenses. These are **not income/fees for the C\&F agent**.
* TDS applies on **income/fees** earned by the agent for their services, which in your case is the "Fees of C\&F" (15% on total).
---
### Applicable Section and Rate:
* Usually, TDS on C\&F services is under **Section 194C (Contractor)** or sometimes **194J (Professional fees)** depending on nature of services.
* Rate is normally **1% or 2% under 194C** or **10% under 194J**. Confirm which section applies to your case.
---
### Summary:
| Component | TDS Deduction? |
| -------------------- | --------------------- |
| Reimbursements (1-3) | No |
| Fees of C\&F | Yes (TDS deducted) |
| Total Bill Amount | No (TDS only on fees) |
---
If you want, I can help you with the exact section and rate based on your contract or help draft TDS calculation for your invoice. Want me to?
---
### What to Deduct TDS on?
* **TDS should be deducted only on the 'Fees of C\&F' part**, NOT on the total bill amount including reimbursements.
---
### Reasoning:
* Reimbursements are amounts paid on behalf of the company, like freight charges, octroi, or other expenses. These are **not income/fees for the C\&F agent**.
* TDS applies on **income/fees** earned by the agent for their services, which in your case is the "Fees of C\&F" (15% on total).
---
### Applicable Section and Rate:
* Usually, TDS on C\&F services is under **Section 194C (Contractor)** or sometimes **194J (Professional fees)** depending on nature of services.
* Rate is normally **1% or 2% under 194C** or **10% under 194J**. Confirm which section applies to your case.
---
### Summary:
| Component | TDS Deduction? |
| -------------------- | --------------------- |
| Reimbursements (1-3) | No |
| Fees of C\&F | Yes (TDS deducted) |
| Total Bill Amount | No (TDS only on fees) |
---
If you want, I can help you with the exact section and rate based on your contract or help draft TDS calculation for your invoice. Want me to?
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