Tds on reimbursement of exps

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Bhavesh (Querist)
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19 April 2012
THE CLEARING & FORWARDING AGENT PAYS ALL THE EXPS LIKE CFS, GROUND RENT, STAMP DUTY, INSURANCE,CUSTOM DUTY ON BEHALF OF THE COMPANY IN CASH & PAY ORDER. THE SAME EXPS IS REIMBURSED BY THE COMPANY AFTER DEDUCTING TDS ON THE EXPS MADE ON BEHALF OF CO.THE BILL MADE BY THE C & f AGENT SHOWS ALL EXPS & THEIR AGENCY CHARGES IN SAME BILL & SERVICE TAX ON AGENCY CHARGES. SO MY QUESTION IS WHETHER TDS SHOULD BE DEDUCTED BY THE CO. OR NOT ON REIMBURSEMENT OF EXPS
THANKING ALL EXPERTS FOR THEIR FEEDBACK IN ADVANCE.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 April 2012 As the Invoice of C&F Agent includes all the
amounts including the reimbursement of expenses, TDS has to be deducted on the entire bill.
.
If C&F raises separate Debit Note for the expenses incurred on behalf of the Company, with necessary evidences in the name of the Company, and no service charge is being added by the C&F Agent, in such case TDS is not required to be deducted on reimbursement. Please also refer-

https://www.caclubindia.com/experts/tds-on-reimbursement-to-c-f-agent-14751.asp

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