We are making job work of another company and raising the Invoice of Jobwork to the party and they are making the payment of Job work charges after deducting the amount of TDS. u/s 143
The material is supplied by the party from their supplier directly to us and payment to supplier is made by them. Since the material is received by us we are making the payment to transporter and get it reimbursed from our party for whom we are making job work.
Now they have deducting the TDS on reimbursement of Transportation U/s143
The transportation charges paid by us below the basic limit and one transaction is below Rs.20,000/- and we don't paid one transportation Rs.75,000/- in a year.
our question is how the party is deducting the tds on reimbursement and they have saying that us to provide any section where it is mention that not to deduct the TDS on reimbursement of Transportation
You are requested to kindly provide us the details so as to not to deduct the TDS on reimbursement of Transportation.
26 March 2018
First of all there is no section under which TDS is deducted as mentioned by u "143". Now the 2nd thing is TDS is not deducted on any kind of reimbursement(s)(irrespective of the amount). TDS on transportation is deducted u/s 194C (with certain terms and conditions) visit the following link for that:-
Since you are not transporters and getting only reimbursement for freight charges paid by u, hence ur Debtors can't deduct TDS from ur reimbursement bill.
The party is not accepting and they are saying that it should be deducted and they are saying that where it is noted in act that it should not be deducted on reimbursement . and they are deducted TDS on Freight u/s 143.
You have any legal wording please provide us. So as to prove us that they are deducing TDS is wrong.
CAclubindia
