TDS in case of clearing and forwarding agents

In case of clg & fwd agents, tds is applicable only on handling / service chgs. majority of them are issuing separate bill for service chgs on which they levy service tax & for reimbursement of exp paid on behalf of party.

I have required clearing & forwarding licences  pls give me the address

Nagendra

student

IF TDS WILL BE DEDUCT, WHAT WILL BE RATE OF TAX AND UNDER WHICH SECTION IT WILL BE DEDUCT.

what is tds rate for clearing agent and

is it contractor or professional>?

Is tds applicable on Clearing & forwarding Charges,If clearing Agent has Pan.

If yes what is the rate of TDS

please tell me the TDS rate for the Clearing and Forwarding charges?

Originally posted by : srikumar
	please tell me the TDS rate for the Clearing and Forwarding charges?

https://www.simpletaxindia.org/2011/04/tds-rate-chart-11-12-fy-tds-rate-12-13.html

194C applies

CFA (clearing forwarding agents) needs to raise a bill of reimbursement to te company stating that they (CFA) shall deduct TDS from the payments made to port/customs on their behalf. TDS will be deposited in the govt by CFA directly under their own TAN number.

And the company will deduct TDS only on the service provided by the CFA, that is agency fees.

ususally c/f agent issues seperate invoice for charges and reimbursement.. if ssame is the case, deduct 2 % on the charges.. in case consolidtaed invoice is issued, deduct 2% on total amount..

Nice Query arachna...n thnx to all who replied d query...

There is no element of commission in Clearing & Forwarding Agents of exporters or importers. Please remember that the tds should be on amount of payments of work contract .In other words , the billing by the clearing forwarding agents are of paramount importance,. If they bill for work at Rs X , tds is to be made on payment or credit of amount Rs X .

If the payments are made for reimbursements, it is advisable that the bills for reimbursement is made separately and paid by your client also separately. Such payments does not come within purview of work contracts and as such no TDS is required on such payments. But that is true only when separate bills are made by Clearing & Forwarding agents

Dear Paras,

If CFA has given consolidated bill including Customs duty, Airport processing charges, on which amount Tds will deduct? for Example

One of CFA issued one invoice included following

Customs Duty     -      2937

Airlie DO              -      16737

Import Doc Process    750

Delivery, Loading Etc  20424

Total                                25727