TDS
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Sowmya
Sep 20, 2010, 4:04:56 AM9/20/10
to CASantoshPrabhuClasses
In case of Shipping and Forwarding charges paid to a single party
which includes service charges & also includes reimbursement of
expenses, on what amount should TDS be deducted? If there is a
separate bill for reimbursement of expenses, whether tds should be
deducted on that also?
which includes service charges & also includes reimbursement of
expenses, on what amount should TDS be deducted? If there is a
separate bill for reimbursement of expenses, whether tds should be
deducted on that also?
Eshanya
Sep 22, 2010, 1:52:22 PM9/22/10
to CASantoshPrabhuClasses
According to Sec 194c , TDS should be made on any payment made to
shipping and forwarding agents.Agent again makes deduction while he
pays to his principal.
Sec 194c includes 'any' work done. Even service rendered is also a
'work done'. Therefore it will be included for deduction of tax.
Reimbursement does not include any 'income' element. Therefore
reimbursement part should be kept aside for deduction of TDS and
deduction is to be made on the balance amount remitted.
If the charges are earned and received outside India, then tax is not
to be deducted.
Form 15 CA (undertaking) and 15 CB (CA certificate) or 'NO OBJECTION
Certificate' from the department is to be filled before remitting.
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