TDS on payment to C & F Agents

This query is : Resolved

Guest

Guest (Querist)

22 October 2008 Dear Experts

As per section 194C, any payments made to C & F Agent is subject to TDS.

However payments to the C&F Agent include following;
1. Reimbursement in respect of various custom formalities etc. inclg freight (Say Rs. 10,00,000/-)
2. his C&F charges (Say. Rs. 75000/-)
3. Total is Rs. 10,75,000

Case 1 - Now suppose he has raised single invoice for both 1 & 2 above, then on which amount TDS is required to be made?

Case 2 - Whether it will make any difference if C&F agent raises debit note for above 1 & his invoice for above 2.?

As per my opinion

Case 1- TDS is required to be made on whole i.e. on Rs. 10,75,000/-
Case 2 – TDs is required to be made only on Rs. 75000/-

Please give your expert opinion…

CA Rohit

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

22 October 2008 Case-1.I agree with your opinion.
Case-2.I agree with your opinion provided evidence of government payment is an attachment to the debit note.

Guest

Guest (Querist)

23 October 2008 thanks

and further

if the reimbursement is in respect of Freight, warehouse fees etc. exclg govt. dues,

Whether tds is to be made on this if he raised debitnote for the same with appropriate supportings.?

Rohit