Tds on payment to clearing & forwarding agents
This query is : Resolved
Quick Summary
Aadish Jain
(Querist)
30 January 2013
A Pvt. Ltd. logistics co.(x) provides services to a ltd. co.(y) and raised a bill as under
1. Non Manipulation certificate Charges
2. Ocean Freight
3. Bill of lading charges
4. Terminal handling charges
5. Storage Charges
and charged service tax on these services I want to know that is the Ltd co.(y)is liable to deduct TDS and if yes than under which section.
plz suggest with clarification
1. Non Manipulation certificate Charges
2. Ocean Freight
3. Bill of lading charges
4. Terminal handling charges
5. Storage Charges
and charged service tax on these services I want to know that is the Ltd co.(y)is liable to deduct TDS and if yes than under which section.
plz suggest with clarification
SANJAY TALATI
(Expert)
30 January 2013
In case of the clearing and forwarding Agent, the applicable TDS provision is Sec. 194 C i.e 2 % in case the CHA is a Company or Partnership Firm else 1%.
From your querry it appears that the CHA has charges Ocean freight , Bill of Lading charges and Terminal Handling charges by availing the services from the different agencies and they themselves must not have provided these services. Hence, these expenses will be in the nature of the reimbursement of expenses and hence no tds should be deducted. On the balance amt. deduct tds @2%.
Ensure to take from the CHA the copy of the bills for availing these services on your behalf.
From your querry it appears that the CHA has charges Ocean freight , Bill of Lading charges and Terminal Handling charges by availing the services from the different agencies and they themselves must not have provided these services. Hence, these expenses will be in the nature of the reimbursement of expenses and hence no tds should be deducted. On the balance amt. deduct tds @2%.
Ensure to take from the CHA the copy of the bills for availing these services on your behalf.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
