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)
TDS stands for Tax Deducted at Source, which is a method of collecting tax at the time of payment. In the case of shipping line services, TDS may be applicable if the service provider is a resident of India and the payment made to them exceeds a certain threshold amount. The TDS rate for shipping line services is generally 5% of the payment amount, but it may vary depending on the specific circumstances. It is important to ensure compliance with TDS regulations to avoid any penalties or legal issues.
CAclubindia
