TDS on Adhat

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2010 Sir My consignor giving bill in that bill he is charging seperately Adhat on goods value and than VAT on Goods Value + Adhat. I need suggestion that how can we treat adhat as a commission or as a Cost of Goods if we treat as a commission than is it necessary to deduct TDS ?



14 June 2010 Can you please clarify what is meant by "Adhat".

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 June 2010 Adhat is type of commission which is charged in bills by some consigner normally it charged when consigner sold goods of their farmer or unregsiter dealer
that goods was not actullay owned by them.


15 June 2010 It appears that the privity of contract is between you and the agent. The contract is for purchase of goods. So far you are concerned, the owner of the goods does not come into picture. You are giving your requirement to the agent and making the payment to him for the goods as well as the commission.

In the above background, in my view, the entire contract is a contract of purchase, and hence, TDS provision is not applicable.

In somewhat similar circumstances, if a supplier recovers cost of transportation for supply of goods, it has been opined in this forum that TDS u/s 194C is not applicable on the transportation amount.

However, more view solicited.



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