Tds applicable on invoice raised

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2013 Our company had imported goods and for getting it into our country hired the services of clearing and forwarding agents. Now the c & f agent has raised the invoice as under-

Service charges for Hawb No - SHAA12001378(Freight)
INTERNATIONAL FREIGHT - 212894
SERVICE TAX @ 12.36% - O
TOTAL - 212894

now the question arises whether the TDS would be deducted?

Sunil

Sunil (Expert)
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03 January 2013 The C&F Agent is not an agent of the shipping company and he is paying the freight / custom duty etc. on your behalf as you are is principal. Therefore you have to deduct TDS u/s 194 C for all payments you make to him. If the C&F agent is also a shipping agent of a foreign carrier and he has collected from you the money on behalf of the carrier and the carrier is his principal, then you do not have to make any TDS on him for the amount to be paid to his principal.