TDS on shipping line service

Dear Sir,

We are taking services from Shipping line Form adc Ltd,
ABC Ltd give subcontract to Def Ltd and xyz Ltd (another shipping co)

ABC issue invoice on my company name (PQR)

agency charges :15000
Reimbursement
to DEF : 118000
XYZ : 118000
TOTAL : 251000

We make payment to abc Ltd.

DEF &XYZ issue invoice on name of my company(Pqr) , we have claimed gst itc.

now question is tds to be dedcuted on service received from DEF &XYZ

(Abc Ltd also not deducted on bill of def &XYZ)
Replies (2)
Quick Summary
This discussion clarifies the applicability of Tax Deducted at Source (TDS) on shipping line services, particularly when sub-contracting is involved. It addresses whether TDS is deductible on payments made to sub-contractors like DEF Ltd and XYZ Ltd, and also on services provided by the primary shipping line, ABC Ltd. The guidance points towards Section 194C of the Income Tax Act, specifying TDS rates based on whether the deductee is a company or another entity.

Tds applicable in case of subcontractors, in case of shipping lines

TDS will be applicable u/s 194C on entire amount  @ 2% if deductee is company and 1% other than company.

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