Tds on payment to cha

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 Dear All,
We have Import Material from china and take services from CHA and he raise three bills for their services the details of bills are as under:-
1. Stamp Duty Charges & Documentation Charges Rs. 32000 (Service Tax Not Charged).

2. Container THC Charges( Piad to Third Party) and CFS charges Rs. 225000 (Service Tax Not Charged).

3. Agency Charges (Service Tax Charged).

Please advice on thich bill tds deducted and in which section these transaction is cover.

With Best Regards,

Sunil Pareek

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

11 September 2013 TDS Applicable only on Agency charges and not applicable on rest(because they are in re-imbursement in nature)
.
.
Provided CHA Agent should provide original bills paid by him for CFS charges and stampduty charges&documentation charges
.
.
Yes,, as these expenditure on incurred by CHA agent as a pureagent of you,, he is not supposed to charge service tax on it
.
.

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

11 September 2013 TDS applicable only on agency charges under section 194C

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 Sir,
Please suggest on THC charges

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

27 July 2025 Here's a breakdown for TDS on payments to your CHA (Customs House Agent):

---

### Bills details & TDS applicability:

| Bill Description | Service Tax Charged? | TDS Applicability | Relevant Section | Notes |
| ------------------------------------- | -------------------- | ----------------------- | ---------------- | ---------------------------------------------------------- |
| 1. Stamp Duty & Documentation Charges | No | No TDS | - | These are **reimbursement** expenses; no TDS on these. |
| 2. Container THC & CFS Charges | No | No TDS | - | These are also **reimbursements** to third parties by CHA. |
| 3. Agency Charges | Yes | Yes, TDS to be deducted | Section 194C | TDS applicable on agency/service charges only. |

---

### Explanation:

* **Reimbursement expenses** (like stamp duty, documentation, THC, CFS) are amounts the CHA pays to others on your behalf and passes on. These do **not attract TDS**, provided CHA furnishes proper bills/receipts.

* **Agency charges** are CHA’s own fees for services rendered, which are **subject to TDS under Section 194C** (Contractual services).

---

### About THC charges:

THC (Terminal Handling Charges) paid to third parties and reimbursed via CHA are **not subject to TDS** on your payment to CHA, provided CHA submits proper proof of payment.

---

### Summary:

* Deduct TDS **only on agency charges** under **Section 194C**.
* Do **not deduct TDS on reimbursement amounts** like stamp duty, documentation, THC, and CFS, if supported by original bills.

---

If you want, I can help draft a note for your accounts team or clarify any other doubts!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok