25 June 2010
A Clearing & Forwarding Agent incurr expenses in the like of transportation, Labour payment, courier, rent etc on behalf of his principal. He use to raise two separate Bill, one for C & F Commission and another for reimbursement of above mentioned expenses on regular basis. My Questions are: 1. Is the Agent require to deduct TDS u/s 194C/194I at the time of making payments under respective heads, presuming that such payment exceeds monetary limits prescribed under respective sections and the Agent is a Company. 2. Is the principal require to deduct TDS before making reimbursement of above expenses to agent.
25 June 2010
In this case, section 194C will be applicable.
Section 194C saya any sum paid means including reimbursement of expenses. But if the person raise two seperate bill-one for his fees and other for reimbursement of expenses. In that case you deduct TDS only on his fees not on reimbursement of expenses.
Tax is required to be deducted either at the time of makinfg payment of date of entry in the books whichwver is earlier.
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