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tds for clearing & forwarding agents

Sramesh (28 Points)

10 May 2007

payments made for services rendered by clearing & forwarding agents in respect of port services both imports & exports as agency commission & other expenses

whether tds has to be dedcuted u/s 194 c (ref query 6 of circular 715 dt 8.8.95) or 194 h ( commission or brokerage for services rendered other than professional services)

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17 Replies

Akash Jain (28 Points)
Replied 10 May 2007

Yes, TDS has to be deducted under section 194C for contract work. In case the CHA gives combined bill for reimbusements and service charges, TDS has to beducted on whole bill. However,if separate debit note is issued for reimbursements and service charges bill is issued separately then TDS is applicable on the bill amount only and not on the debit note

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Vinita (23 Points)
Replied 27 June 2007

My client is a freight forwarding agent regd with IATA and DGFT. They are presently raising consolidated bill for freight, local charges, service charges etc. I wanted to check if this is a correct practice sicne they are charging service tax only on their service charges. Also from point of view of TDS, how will raising seprate bill and debit note help?

(Guest)

sir, i am running clearing & forwarding services to the pvt ltd company. on behalf of my importer i have cleared their machinery. I paid steamer dues on behalf of them and raised separate bill for reimbursement and raised service bill separately. pls advise how much % of TDS applicable to my both bill? will my reimbursement bill attract TDS? If so what is the rate? Pls clarify?

(Guest)

PLS REPLY MY QUERY RAISED

(Guest)

sir, one behalf of importer, we have paid customs duty, octroi, warehouse and other charges approx 32,30,000, now party is deducting tds on whole amount, and our agency charges is rs.40,000/- now party is deducting tds on total bill amount with comes to rs.55000/- approx. please let us know whether it is correct?

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(Guest)

Yes, I'll accept TDS has to be deducted under section 194C for contract, and payment made for services rendered by clearing & Forwarding agents but now

on excemption certificate shown by party, that is why we are not deducting any TDS on the services provided and any type of contract work or on clearing & forwarding agent. please reply me on my mail

(Guest)

Originally posted by :Sramesh
"	payments made for services rendered by clearing & forwarding agents in respect of port services both imports & exports as agency commission & other expenseswhether tds has to be dedcuted u/s 194 c (ref query 6 of circular 715 dt 8.8.95) or 194 h ( commission or brokerage for services rendered other than professional services)	"

(Guest)

Wheter TDS has to deducted on entire amount of custom & clearing charges which includes expenses incurred by clearing agent on behalf of us or only it has to be deducted on agency charges u/s194 c

(Guest)

we have appointed an agent for clearing our vehicles at Octroi Naka, by payment of Octroi on our behalf. We will be reimbursing him the octroi amount basing upon the original octroi receipts and he charges service charges on the octroi amount paid him. Can anybody clarify whether TDS is to be deducted on such service charges.

(Guest)

FACT OF THE CASE:

THERE IS ONE CEMENT PLANT WHOSE FACTORY IS SITUATED IN U. P. & THE SELLING POINT OF THAT PRODUCT IS KERLA. SO THAT COMPANY HAS TO DISPATCH THE CEMENT FROM UP TO KERLA. FREIGHT FOR EVERY TRIP FOR UP TO KERLA OR VICE VERSA IS MORE THEN RS. 50000/-, SON THAT TDS IS TO BE DEDUCTED ON EVERY TRUCK.

FOR THIS PURPOSE COMPANY ENTERS IN CONTRACT WITH XYZ COMPANY FOR TRANSPORTATION. AND DEDUCTING TDS ON FREIGHT @ 2.27% OF MAIN CONTRACTOR.

THE MAIN CONTARCT HIRE A COMMISSION AGENT WHO DO THE WORK IN BEHALF OF THE CONTRACTOR AND GETS A FIXED AMOUNT FOR EVERY TRIP. THE COMMISSION AGENT SEARCH FOR THE TRUCKS WHO DOES THE WORK AT LESS COST AND SEND THE GOODS WITH THAT TRUCK. FOR THAT REASON THE MAIN CONTRACT IS NOT IN A POSITION TO DEDUCT THE TDS OF TRUCK INDVIDUALLY AS PER SUB CONTRACT RATE i.e. 1.13%. SO MAIN CONTRACTOR DEDUCTS TDS OF COMMISSION AGENT FOR THE FREIGHT. AND PAYS 90% OF THE FREIGHT DIRECTLY TO THE TRANSPORTER AND BALANCE 10% HE TRANSFERS INTO AOOUNT OF COMMISSION AGENT.

AFTER DEDUCTING HIS COMMISSION THE COMMISSION AGENT PAYS THE BALANCE AMOUNT TO TRUCK OWNER.

MY QUERY:

1. IS THERE WILL BE ANY LIABILITY ARISES FOR COMMISSION AGENT FOR DEDUCTING TDS OF THE TRUCK OWNER?

2. IF YES THEN ON WHAT AMOUNT ON FULL 100% AMOUNT OR ON 10% AMOUNT REDUCED BY HIS COMMISSION?

3. WHAT HAPPENS IF WHOLE 100% AMOUNT PAID BY THE MAIN CONTRACTOR TO TRUCK OWNER AND ONLY COMMSSION TRANSFERS TO COMMISSION AGENT ACCOUNT?

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BHUPENDRA SINGH (Job) (30 Points)
Replied 02 September 2008

plese sent me the detail on the topic"ACCOUNTS OF A ClEARING & FORWARDING AGENT(WITH INVENTARY) as soon as possible.

thanks............

bhupndra singh

(Guest)

Originally posted by :Guest
"	sir, one behalf of importer, we have paid customs duty, octroi, warehouse. transporation and other charges approx 1000607.00 now party is deducting tds on whole amount, and our agency charges is rs.20,000/- now party is deducting tds on total bill amount with comes to rs.56000/- approx. please let us know whether it is correct?	"

(Guest)

Sir

it is very critical condition to be clarify that one transporting company when store the meterial in his warehouse and charge the rent as well as the freight chg also what rate of the tds should be applied. pls clear the condition

Keval (student) (0 Points)
Replied 01 December 2008

Originall
"	sir, one behalf of importer, we have paid customs duty, octroi, warehouse and other charges approx 32,30,000, now party is deducting tds on whole amount, and our agency charges is rs.40,000/- now party is deducting tds on total bill amount with comes to rs.55000/- approx. please let us know whether it is correct?	"