Tds provisions as per section 194 c of i.t.act

Dear Professional Experts,

Please update me on latest status of TDS Provisions under 194A of I.T.Act on following issues as under:-

i) Whether TDS is to be deducted on Reimbursement Amount payable to Deductee who has paid on behalf of Deductor.For example in case of Clearing & Forwarding Agents who is importing/exporting of goods on behalf of us and accordingly paying certain expenses initially by them viz Customs duty payments, Sea Freight Charges,Documentation Charges ,warehousing charges,Demerrage charges,ground rent etc for which he raising bills showing seperate columns for reimbursement amount & other Services which is subject to Service tax also. Now query is on which amount TDS is to be deducted.

ii) secondly whether TDS is also subject to on VAT or Service tax portion or not.(i.e. Gross Amount inclusive of VAT & Service Tax)

Please reply urgently.

Section 194A (2015-16)

In section 194A of the Income-tax Act, in sub-section (3), with effect from the 1st day of June, 2015,—

(a) in clause (i), after the proviso, the following proviso shall be inserted, namely:—
“Provided further that the amount referred to in the first proviso shall be computed with
reference to the income credited or paid by the banking company or the co-operative society
or the public company, as the case may be, where such banking company or the co-operative
society or the public company has adopted core banking solutions;”;

(b) in clause (v), for the words “paid by a co-operative society to a member thereof or”, the words
and brackets “paid by a co-operative society (other than a co-operative bank) to a member thereof
or to such income credited or paid by a co-operative society” shall be substituted;

(c) after clause (v), the following Explanation shall be inserted, namely:—
‘Explanation.—For the purposes of this clause, “co-operative bank” shall have the same as
meaning assigned to it in Part V of the Banking Regulation Act, 1949;’;

(d) for clause (ix), the following clauses shall be substituted, namely:–

“(ix) to such income credited by way of interest on the compensation amount awarded by the
Motor Accidents Claims Tribunal;
(ixa) to such income paid by way of interest on the compensation amount awarded by the
Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the
aggregate of the amounts of such income paid during the financial year does not exceed fifty
thousand rupees;”;

(e) in Explanation 1 below clause (xi), for the word “excluding”, the word “including” shall be
substituted.

Regards