TDS on Professional Logistics Services

There is one agreement between company & logistic firm. Company will be using premise of logistic firm. In agreement, it is clearly mentioned that logistic firm will be providing "Professional Logistics Services". They are also charging service tax.

Whether TDS will be deducted u/s 194C, 194J or 194I.

Please suggest.

 

Replies (4)

If company is only using the premises of logistic firm and not receiving any service from that firm then in that case it will be deducted u/s 194I (rent).

Agreed with Dilip.

 

If you are using premises only then it is Rent U/s 194I.

If they are providing you with transportation, storage and handling of the cargo as one composite service, then it is a contract u/s 194C.

If they are giving you consultancy and management services and also providing you personnel to manage your logistics, then u/s 194J.

I guess here u are only using the premises and this is a sort of rent payment for using the premises and hence, TDS should be deducted under section 194I

Nice suggestion by you all and I think abhishek should follow the given suggetion. Actually the process contains few rules for here.

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