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tds and service tax query for Freight forwarders

TDS / TCS 3612 views 3 replies

A freight forwarding agent regd with IATA and DGFT is presently raising consolidated bill for freight, local charges, service charges etc on local customers.  I wanted to check if this is a correct practice since they are charging service tax only on their service charges. Will it be better if they were to raise two separate bills for service charges and reimbursables?  Also what shall be the TDS implications.  CAn TDS be deducted on the freight charges recovered by the agent?  What is the practice followed by other similar agents?

Replies (3)
VINITA YOU ARE RIGHT SEPRATE BILLS SHOULD BE RAISED OTHERWISE TDS WILL BE DEDUCTED ON GROSS AMOUNT OF BILL. TDS IS ALSO LEVIABLE ON FREIGHT, IF IT IS PAID TO INDIAN COMPANIES.
I have few queries related to tax deduction .Please help to clarify them 1) I had fixed deposit of Rs 10 lakhs in my bank and the bank has deducted tax at source at the rate of 10.2% for the financial year 2006-2007. Do I need to pay tax higher than 10.2% for the interest that is earned on Rs. 10 lakhs while filing tax return form for financial year 2006-2007? I am salaried and my gross annual income comes around 9-10 lakhs for financial year 2006-2007. 2) For the financial year 2005-2006, I had filed the tax return form for my annual gross income of Rs. 9 lakhs from salary. But did not include the income earned from interest (for financial year 2005-2006) for the fix deposit amount of Rs 10 lakhs since I did not get the form16A from the bank. But now I got the form16A TDS certificate from the bank. Can I include this interest income while filing tax return form for financial year 2006-2007 or do I need to fill another form to declare this income, which was not declared while filing tax return for financial year 2005-2006.If so, which is that form?
MR PRASHANT YOU HAVE TO ADD INTEREST INCOME IN YOUR SALARY INCOME AND DEDUCT INVESTMENTS U/S 80C AND THEN CALCULATE YOUR TAX. YOUR INTEREST INCOME WILL ATTRACT 30%+SC+EC IF YOUR TAXABLE INCOME GOES MORE THAN 10 LACS OR IF IT IS LESS THAN 10 LAC THEN 30+EC WILL APPLY.YOU HAVE TO FILE UR ITR IN NEW FORM ITR-1 FOR F.Y.2006-07 NOW FOR F.Y.2005-06, YOU CAN REVISE YOUR OLD ITR IN SARAL FORM 2-D ADDING INTEREST IN UR SALARY AND THEN CALCULATE TAX AND DEDUCT TDS OF FORM 16A AND DEPOSIT THE BALANCE TAX IN BANK AND FILL IN THE SARAL FORM STATING REVISED RETURN AND ENCLOSE PHOTOCOPY OF OLD RETURN AND FORM 16 AND ORIGINAL FORM 16A AND TAX CHALLAN


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