TDS on frieght Reimbursed by us
This query is : Resolved
14 November 2008
What happens in this following hypothetical case.
Supplier sends me goods and he pays the transporter i reimburse to him the transportation cost.
Supplier sends me goods and he pays the transporter i pay a fixed (agreed) sum to him the transportation cost.
As you know both are not "To Pay Basis" like the circular issued by department.
Service tax and TDS implication on both.
Supplier sends me goods and he pays the transporter i reimburse to him the transportation cost.
Supplier sends me goods and he pays the transporter i pay a fixed (agreed) sum to him the transportation cost.
As you know both are not "To Pay Basis" like the circular issued by department.
Service tax and TDS implication on both.
S.Srinivasaraghavan
(Expert)
14 November 2008
The basic question what is the terms of contract as to delivery and the terms with transporter to determine who is the service provider and who is the receiver.
14 November 2008
I put everything clearly in my question Whats ur problem in that
I have put
Supplier sends me goods and he pays the transporter i reimburse to him the transportation cost.
Supplier sends me goods and he pays the transporter i pay a fixed (agreed) sum to him the transportation cost.
What more u mean by terms i said im dealing with the supplier then i mean im recieving goods... if these terms are not present then only its a case for discussion or else i know whom to deduct tds with.
I have put
Supplier sends me goods and he pays the transporter i reimburse to him the transportation cost.
Supplier sends me goods and he pays the transporter i pay a fixed (agreed) sum to him the transportation cost.
What more u mean by terms i said im dealing with the supplier then i mean im recieving goods... if these terms are not present then only its a case for discussion or else i know whom to deduct tds with.
Ram Avtar Singh
(Expert)
14 November 2008
who will pay to transporter tds to deduct from tranporter & pay service tax to govt. & it will be reimbursment by you.
Sambu Suresh
(Expert)
14 November 2008
Dear sir,
As per the service tax rules, notified category of the person is liable to pay the service tax. In case if the service receiver is not the notified category of the person, then transporter is liable to pay the duty.
If both the supplier and the purchaser are the notified category of the persons, then as per the contract who are liable to pay the tranport charges, those are lialbe to pay the service tax.
I think that is the reason why srinivasa raghavan had asked you the contract details.
In your first case, you are not directly paying to transporter. But you are reimbursing to the vendor. Therefore it is the duty of the vendor to pay the service tax, and not you.
your second case is same related.
Notifed category of persons:
for eg:
companies,
socities,
factories,
for list you can refer the book
factories.
As per the service tax rules, notified category of the person is liable to pay the service tax. In case if the service receiver is not the notified category of the person, then transporter is liable to pay the duty.
If both the supplier and the purchaser are the notified category of the persons, then as per the contract who are liable to pay the tranport charges, those are lialbe to pay the service tax.
I think that is the reason why srinivasa raghavan had asked you the contract details.
In your first case, you are not directly paying to transporter. But you are reimbursing to the vendor. Therefore it is the duty of the vendor to pay the service tax, and not you.
your second case is same related.
Notifed category of persons:
for eg:
companies,
socities,
factories,
for list you can refer the book
factories.
Ravikumar.G
(Expert)
17 November 2008
As per service tax reimbursement of agent which need not included for ST calculation purpose.
Ravikumar.G
(Expert)
17 November 2008
as for as TDS is concerned all payments which is included in the bills will come under TDS purview.
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