Dear all,
If a firm is availing the service of C & F agent, will tds be applicable on the payment regarding C & f charges to the party. Pls clarify.
Regards,
Srinivas
CA Final
14 Replies
CA ANKUSH AGGARWAL
(CHARTERED ACCOUNTANT)
(2782 Points)
Replied 02 February 2011
hi srinivas.yes Tds wud b deducted if a firm is availing c &f sevices u/s 194C
sudhir
(Business Process Re engineering)
(1083 Points)
Replied 02 February 2011
Yes tds will be applicable u/s 194C.
caferoz
(CA)
(232 Points)
Replied 02 February 2011
It is applicable as stated above by various other members, but it is not applicable on certain charges.
Can you eloborate what are all the Charges C&F Agent shows in his bill.
Further what is the amount involved in payment?
ashoka r d
(senior audit assistant)
(82 Points)
Replied 02 February 2011
there will be no TDS provided the agent provides his PAN number
Rahul
(Other)
(78 Points)
Replied 03 February 2011
TDS will be applicable on to the extent of incentive paid to Consingment agent for his services & not on the reimbursement of the expenses done by Consingment agent on behalf of Consignor .
Sarita
(Article)
(154 Points)
Replied 03 February 2011
Yes, TDS will be applicable under section 194 C.
Rate of TDS:=
Individual/HUF = 1.00%
Any other person/company = 2.00%
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 03 February 2011
Question 6 : Whether payment under a contract for carriage of goods or passengers by any mode of transport would include payment made to a travel agent for purchase of a ticket or payment made to a clearing and forwarding agent for carriage of goods ?
Answer : The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provision of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act. As regards payments made to clearing and forwarding agent for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act.
Question 7 : Whether a travel agent/clearing and forwarding agent would be required to deduct tax at source from the sum payable by the agent to an airline or other carrier of goods or passengers ?
Answer : The travel agent, issuing tickets on behalf of the airlines for travel of individual passengers, would not be required to deduct tax at source as he acts on behalf of the airlines. The position of clearing and forwarding agents is different. They act as independent contractors. Any payment made to them would, hence, be liable for deduction of tax at source. They would also be liable to deduct tax at source while making payments to a carrier of goods.
Circular : No. 714, dated 3-8-1995.
CA. MOHAMMAD.QUSROO
(CA FINAL)
(81 Points)
Replied 03 February 2011
ya, i agree with CA. Rahul Saxena sir. TDS is not applicable for reimbursement of expenditure incurred by C&F agents on behalf of company, we have to deduct TDS on service of C&F agents services only.
Srinivas Reddy
(CA , MBA)
(59 Points)
Replied 08 February 2011
Dear Friends, Thank u very much for clarification
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