Leena (accounts assistant) 14 October 2019
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.
CA Dhruva Kalamanji (Chartered Accountant ) 14 October 2019
If the transaction carried is under pure agent principle then no TDS have to check for agreement between a and b
You can also write to me at sthayin @ gmail for further assistance