Respected seniors and Dear colleagues,
I am facing a problem regarding tds to be deducted on services provided by a clearing and forwarding agent, please go through the below mentioned fact of the case and please help me ASAP...
FACTs OF THE CASE:
We are impoting instruments from japan and china. we have appointed TNT as our clearing and forwarding agent.
TNT issue two types of bill to us:
(1) one bill for their services they provide us like freight, clearing, loading unloading etc. and they charge service tax on this bill and we deduct TDS on this bill amount.
(2) another bill consists of two items:
(i) duty amount they paid on behalf of us
(ii) handling charges as their own charges and they charge service tax only on the amount of handling charges not on the reimbursable amount of duty
Question:
(1) are we supposed to deduct TDS on the second type of bill as mentioned above ???
(2) if we are supposed to deduct tds on second bill, then on what amount and which rate.????
whether on amount of handling charge only or on total amount ?????
expecting your full support and prompt reply...
Regards:
CA Gaurav Agarwal
CAclubindia
