TDS on payment to clearing and forwarding agents

Rohit Agharkar (Internal Auditor) (39 Points)

14 July 2011  

A company is engaged in providing services such as documentation, terminal handling services etc. with respect to exporting consignments from ports. It does not provide cargo handling services. It also provides a service tax registration number in its invoices and collects service tax on the services that it provides under Business Auxiliary service/Business support service. It provides a bifurcation of each of the activities performed/services undertaken in the invoice.

It is not directly a clearing and forwarding activity but an allied activity to clearing and forwarding.

Should tax be deducted at source u/s 194C on payment made to such a service provider ?