Tds on reimbursement on transportation

This query is : Open

Govind Parik (Querist)
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26 March 2018 Kindly inform us on following

We are making job work of another company and raising the Invoice of
Jobwork to the party and they are making the payment of Job work
charges after deducting the amount of TDS. u/s 143

The material is supplied by the party from their supplier directly to us
and payment to supplier is made by them. Since the material is received
by us we are making the payment to transporter and get it reimbursed from
our party for whom we are making job work.

Now they have deducting the TDS on reimbursement of Transportation U/s143

The transportation charges paid by us below the basic limit and one
transaction is below Rs.20,000/- and we don't paid one transportation
Rs.75,000/- in a year.

our question is how the party is deducting the tds on reimbursement and
they have saying that us to provide any section where it is mention that
not to deduct the TDS on reimbursement of Transportation

You are requested to kindly provide us the details so as to not to
deduct the TDS on reimbursement of Transportation.

Sandeep Dharar

Sandeep Dharar (Expert)
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26 March 2018 First of all there is no section under which TDS is deducted as mentioned by u "143". Now the 2nd thing is TDS is not deducted on any kind of reimbursement(s)(irrespective of the amount). TDS on transportation is deducted u/s 194C (with certain terms and conditions) visit the following link for that:-

https://taxguru.in/income-tax/tds-payment-contractors-section-194c.html

Since you are not transporters and getting only reimbursement for freight charges paid by u, hence ur Debtors can't deduct TDS from ur reimbursement bill.

Govind Parik

Govind Parik (Querist)
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28 March 2018 Dear Sir,

The party is not accepting and they are saying that it should be deducted and they are saying that where it is noted in act that it should not be deducted on reimbursement . and they are deducted TDS on Freight u/s 143.

You have any legal wording please provide us.
So as to prove us that they are deducing TDS is wrong.

Since we are getting very tough to convince them.

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