For shipping Agencies or Freight & Forwarding Agent, at what amount should TDS should be deducted? i.e The bill has been contain various expenses made by them for clearing the goods and collecting the same with the client?
Somaas Kandan (CA Final) (385 Points)
28 June 2011For shipping Agencies or Freight & Forwarding Agent, at what amount should TDS should be deducted? i.e The bill has been contain various expenses made by them for clearing the goods and collecting the same with the client?
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 28 June 2011
ON GROSS AMOUNT TDS SHOULD BE DEDUCTED
Devpura Nikunj
(student)
(70 Points)
Replied 29 June 2011
Hi,
If i m not wrong than the query u are asking is in respect of TDS to be deducted on reimbursement of expenses to freight & forwarding agent or not ?
advice your Freight & forwading agent to issue different bills for reimbursement of expenses and his commission or his service income .If he issues differentbills then TDS on only his commisssion or service charges.
In other cases on gross value . i.e including reimbursement of expenses.
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