Tds on re-imbursment invoices issued by clearing agent

This query is : Resolved

Rakesh Sharma (Querist)
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08 January 2013 IS THERE ANY LIABILITY TO DEDUCT TDS ON VARIOUS PAYMENTS I.E. SHIPPING LINE, DETENTION CHARGES ETC. PAID BY CLEARING AGENT ON OUR BEHALF & ISSUE A SEPARATE INVOICE FOR RE-IMBURSEMENT.

SHIPPING LINE 56000.00 (APPROX.)
DETENTION 71000.00 (APPROX.)
MISC. EXP. 10000.00 (APPROX.)

THANKS IN ADVANCE.

srinivasan

srinivasan (Expert)
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09 January 2013 The reimbursement will not partake the nature of income of the C&F agent provided the bills are in the name of the company. Therefore no TDS is required on the same.

However the shipping agent should deduct TDS whereever applicable while he was originally making the payment to the parties.