16 November 2009
If we reimburse octroi amount to the Octroi Agent where he charges 1% of service charge on octroi amt.paid, then applicability of TDS is arising if yes then under what section & what rate the tax is to be deducted and on which amount ?
16 November 2009
Sec 194C if you have an contract with the agent.
TDS rate is 1 % if the said agent is Individual or HUF and 2 % for others on the gross amount of the bill.
However octroi challan should be in your name and you should ask your agent to issue separate Invoice for sevice charges so that you need not deduct TDS on octroi.
CAclubindia
