TDS on Port Charges

Dear Members,

Need clarification wrt the following issue: -

Our Company had imported a lift from Dubai. Our Agent have charges us various charges under following heads: -

1).Port CFS Charges 2).Container transfer charges 3).Empty container unloading charges 

4).Calcutta port tax 5).Container handling cargo examination charges

6).Forwarding agency charges 7).D O fees 8).Carrier DO fees.

Agent is collecting on behalf of calcutta port trust then should we deduct TDS on above or not.

Further agent has given us a copy of circular no - 723 which I think not applicable for the charges mentioned above.

Need your opinion on above.

Thanking you

 

 

 

 

Replies (4)

check the annexed documents and if found them in order in name of company then no tds on such fees which are direcly paid by agent for and behalf of company, 

but if the documents are not in name of company then tds applicable on whole sum paid, 

Thanks again for your reply. Further is there any circular or section wrt the same for reference purpose.

no circular needed as the documents belong to company , company will book the expenses direct in respective heads, only the balance is subject to TDS

Sharma Ji,

I have checked the documents some documents are not in the name of company rather same is in the name of our agent. Hence based on the clarification given by u I must deduct TDS on the bill which has been issued in the name of our agent. But agent is harping on the same issue based on the circular no 723 ( as stated earlier) but which I think has no relevance to the charges which is being incurred in India.

As far as I think section 172 will come into play only when we make payment to any non residents but in the present scenario we are making payment to Resident either through agent or directly.

Plz clarify the above as it would be of great help for me.

Thanking you

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