TDS u/s 194C or 194J
This query is : Resolved
Kinjal B Shah
(Querist)
10 March 2008
Dear All,
We are a limited co.
We have exported goods, for export we have appointed Clearing & Forwarding Agent for transportation of goods to abroad.
This Clearing & Forwarding Agent has issued 2 bills, one for their Service charges (Rs.4,000) & other for Reimbursement of expenses like insurance, transportation expenses (Rs.24,000).
Now the query is whether this service charges should be treated as Professional Fees. ie TDS u/s 194J or it should be treated as Contract charges ie TDS u/s 194C.
If it will be treated as contract charges & then whether TDS is required to be deducted only on Services charges or it should be on both, Service Charges & Reimbursement of expenses.(Party is giving separate bill for reimbursement of expenses.)
Can any one tell me what is general practice which is being followed in this circumstances. Also let me know if there is any Circular, Notification or Case law related to this matter.
If anybody required any other detail, then just let me know.
We are a limited co.
We have exported goods, for export we have appointed Clearing & Forwarding Agent for transportation of goods to abroad.
This Clearing & Forwarding Agent has issued 2 bills, one for their Service charges (Rs.4,000) & other for Reimbursement of expenses like insurance, transportation expenses (Rs.24,000).
Now the query is whether this service charges should be treated as Professional Fees. ie TDS u/s 194J or it should be treated as Contract charges ie TDS u/s 194C.
If it will be treated as contract charges & then whether TDS is required to be deducted only on Services charges or it should be on both, Service Charges & Reimbursement of expenses.(Party is giving separate bill for reimbursement of expenses.)
Can any one tell me what is general practice which is being followed in this circumstances. Also let me know if there is any Circular, Notification or Case law related to this matter.
If anybody required any other detail, then just let me know.
CA. GOPAL SONIKA
(Expert)
10 March 2008
TDS should be U/s 194C.
Secondly since the party has issued different bills no TDS on reimbursement bill.
Had there been a single bill then TDS would have been levied on entire amount as per circulasr 715 dated 1995.
Secondly since the party has issued different bills no TDS on reimbursement bill.
Had there been a single bill then TDS would have been levied on entire amount as per circulasr 715 dated 1995.
Amit Sharma
(Expert)
10 March 2008
As per my knowledge it should be 194J which says TDS on professions should be deducted @ 11.66% on the gross amount.
Kinjal B Shah
(Querist)
10 March 2008
Dear Mr.Gopal,
Circular 715 is for Section 194J.
Circular 715 is for Section 194J.
10 March 2008
THIS SERVICE ATTRACTS TDS UNDER SEC 194C BEING CONTRACTED SERVICES BY CFA.
IF THERE IS SEPARATE BILL FOR REIMBURSEMENTS, NO TDS APPLICABLE UNDER CIRCULAR REFERRED BY SRI GOPAL ABOVE.
R.V.RAO
IF THERE IS SEPARATE BILL FOR REIMBURSEMENTS, NO TDS APPLICABLE UNDER CIRCULAR REFERRED BY SRI GOPAL ABOVE.
R.V.RAO
CA. GOPAL SONIKA
(Expert)
10 March 2008
No Mr Kinjal B Shah, pl go thru the circular once again. it is for 194C, 194J and 194I.
10 March 2008
TDS U/S 194C IS TO BE DEDUCTED BUT NOT IN CASE OF REIMBURSEMENT
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