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I want to know the TDS applicability section for services of custom house agent. At what percentage

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chiman bunha

accountant

21 Points Posted on 17 February 2021

i want to know the TDS applicability section for services of custom house agent. At what percentage tax is required to be deducted on service charges of CHA.

tds Rate & tds celling limit

Replies (2)

Quick Summary

This discussion clarifies the TDS applicability for Custom House Agent (CHA) services. It argues that CHAs should be classified under Section 194C, not 194J, as their role involves clearing consignments rather than providing professional consultancy. The applicable TDS rate for CHA services under Section 194C is 2%.

CA Dolly Sharma

SELF EMPLOYED

389 Points Posted on 17 February 2021

Some firms treat the C H A as "Consultants" and some as Professionals under this 10 % TDS (194 J) is being deducted. Whereas these firms should rightly be classiefied under 194 C only as they are not doing any professional services offering consultancy or expert opinion but clear the consignments by submitting required papers collected from the importeres/exporteres and see that these files are moved from one table to another table