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

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

11 March 2015  

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.