TDS at what rate be deducted from Custom House Agents bill ?

We are Custom House Agents providing Clearing & Forwarding services to various corporates. Many Clients are deducting TDS @ 2.27 % and some are deducting @

11.33%. What is the appropriate rate of TDS clients should deduct from our bills ? Kindly advise please.

Thanks & Regards

Valerian D'Souza,

Accounts Manager

 

 

Replies (2)
HI, PAYMENT TO CHA IS UNDER 194C FOR ALL CLARIFICATION SEE CIRCULAR NO. 715 DATED 8-8-1995. this is enough information for you furhter clarification mail me. Deepak Mishra
See answer of clarification no. 6 in this circulars which is :- The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provision of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act. As regards payments made to clearing and forwarding agent for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act.

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