TDS on demurrage charged by Mumbai Port Trust

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This query is : Resolved

Vinay (Querist)
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09 February 2011 We are coastal logisitics company.There are several contracts signed between our company and sub contracters. our two logistics operation unit in Porbandar and Mumbai.

We appointed two stevedoring agents at both locations.

in Porbandar,

We are paying demurrage for containers
to our agent. Because , he deposit in a/c of GUJARAT MARITIME BOARD on behalf of us.Its body of Govt.of Gujarat.

He is not deducting TDS before deposit the demurrage.

Should we deducted tds from agent's bill.

In Mumbai,

We are paying demurrage for containers
to our agent. Because , he deposit the amount in a/c of MUMBAI PORT TRUST on behalf of us.Its body of Govt.of Maharashtra.

He is not deducting TDS before deposit the demurrage.

Our agent pass on entire demurrage amount to us.

Should we deducted tds from agent's bill.

Please advice.

Vinay Kale

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 February 2011 "There are several contracts signed between our company and sub contracters."

I think "sub-contractors" and "agents" words are used interchangeably by you.

1. The contractor has been assigned any work of your company and he is performing
the work in his own way.

2. Company gives him credit for his bills or pays him, under this contractual obligation only.

So TDS U/s 194C has to be deducted by the Company on the entire amount of bills raised by the contractors.

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