TDS on pure Agent


This query is : Resolved 

Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) should be applied to payments made to a pure agent. The consensus is that TDS is generally not applicable because the pure agent is merely reimbursed for actual expenses incurred. Since there is no profit element included in these reimbursements, they are not considered subject to tax, and therefore, TDS is not required.

(Querist)
02 May 2022 whether TDS to be deducted on Pure agent.

02 May 2022 TDS not applicable on pure agent service.

Daya (Querist)
02 May 2022 sir,
please reply what is reason to not deduct TDS.

03 May 2022 It's only reimbursement of actual expenses incurred.
No profit element included which is subject to tax hence no TDS applicable.


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