C&F agents TDS 194C


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Querist : Anonymous (Querist)
30 June 2010 for Clearing and forwading agents, whether TDS U/s194C shud b deducted on bill amount i.e. reimburse+service charges or only service charges amount. please reply with supporting evidence.

30 June 2010 Please refer to the answer to question no. 7 of circular no. 715 dtd. 08/08/95. The answer read as under.

"The travel agent, issuing tickets on behalf of the airlines for travel of individual passengers, would not be required to deduct tax atsource as he acts on behalf of the airlines. The position of clearing and forwarding agents is different. They act as independent contractors. Any payment made to them would, hence, be liable for deduction of tax atsource. They would also be liable to deduct tax at source while making payments to a carrier of goods"

In view of the above clarification, TDS has to be deducted on the whole amount(Reimbursement + service charges).


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