TDS on Clearing & Forwarding Charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2010 Sir,
We have received debit note from our clearing & forwarding agent which is as follows:-
IHC 136086
D.O Fee 2500
Manifestation 1500
Cleaning Charges 2000
LOLO 1400
CMC 140
Service tax 10.30 14794
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Total 158420/-

On what amount we should deduct & under which section of Income tax.
Thanks

Anurag Agarwal

Anurag Agarwal (Expert)
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24 March 2010 Deduct the Tax on the whole amount 158420/- under section 194C.....as the section says .....Any Sum paid....which will include the service tax also

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 March 2010 TDS SHOULD NOT BE DEDUCTED ON SERVICE TAX AMOUNT AS IT NOT INCOME OF DEDUCTEE. TDS SHOULD BE DEDUCTED ON AMOUNT EXCLUDING SERVICE TAX.

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Anurag Agarwal

Anurag Agarwal (Expert)
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24 March 2010 Under Section 194J and 194C TDS to be deducted including Service tax.
This is as per the clarification from the department. As both these section starts with the the line any sum paid.......which includes even reimbursements and service tax.