Tds applicable or not and which section

This query is : Resolved

Harshad Parab (Querist)
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17 December 2011 We have import Machinery and paid transport charges to ABC Company. In Transport charges bill ABC Company charged as AGENCY CHARGES in separate Column. Can we libel to deduct TDS on AGENCY CHARGES? and Which section?(ABC company having a valid PAN).

Guest

Guest (Expert)

17 December 2011 I think TDS should not be deducted.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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17 December 2011 Please ask ABC Company to provide bill as transportation charges otherwise in case of scrutiny the AO will treat the agency charges as commission which attracts TDS u/s 194H @ 10%. Therefore, you need to guard against this.

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