Tds on highseas purchase

This query is : Resolved

CA Parul Saxena (Querist)
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21 November 2013 Our co. has purchased goods through highseas seller...he has send the bill of Rs.100000 and a seaparate bill of clearance and storage of goods of Rs.15000 (including service tax).
Whether TDS to be deducted on this separate bill or should be booked as purchase

CA Galib Mirza

CA Galib Mirza (Expert)
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21 November 2013 Hello CA Parul
In this case the amount of Rs.15,000/- charged by the vendor is for the service provided by him towards clearance of goods and storage of the same i.e C&F Agent Service. Such amount is not a part of purchases but Direct Expenses.
Hence according to me TDS has to be deducted U/S 194C