TDS Deduction on re-imbirsement charges

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A is a clearing agent and B is their party. A makes a payment to C(shipping line / forwarder/3rd party) for freight charges on behalf of B. A also bills the same amount without GST to B as reimbursement for Freight charges. At the time of payment, TDS is deducted on the amount when B pays the re reimbursement to A.

Is this right ? Because these are reimbursement charges which the clearing agent has paid on behalf of the Consignee. 

 

Replies (1)
If the transaction carried is under pure agent principle then no TDS have to check for agreement between a and b

Thank you
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