As per section 194C, any payments made to C & F Agent is subject to TDS.
However payments to the C&F Agent include following; 1. Reimbursement in respect of various custom formalities etc. inclg freight (Say Rs. 10,00,000/-) 2. his C&F charges (Say. Rs. 75000/-) 3. Total is Rs. 10,75,000
Case 1 - Now suppose he has raised single invoice for both 1 & 2 above, then on which amount TDS is required to be made?
Case 2 - Whether it will make any difference if C&F agent raises debit note for above 1 & his invoice for above 2.?
As per my opinion
Case 1- TDS is required to be made on whole i.e. on Rs. 10,75,000/- Case 2 – TDs is required to be made only on Rs. 75000/-
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