Applicability of TDS on Freight Station Charges
Is TDS applicable on Container Freight Station Charges and Less Container Load Charges, if it exceeds Rs 75,000/- ?
Payable to whom?
DO you mean it Overweight Charges?
Is it paid to transporter or clearing agent?
Please provide Facts of The case So that you can get Best Advise from our Members of TIK Share..
"Is TDS applicable on Container Freight Station Charges and Less Container Load Charges, if it exceeds Rs 75,000/- ?"
Question is not clear, can you please expand the question.
It is paid to Logistic Company, located in Bangalore, PAN No is mentioned in Invoice. particulars of invoice are :
1. CFS Charges
2. Documentation Charges
3. Service Tax
Total service tax charged is Rs 7238/- That means service charge is Rs 58,560/-
The charges you mentioned are not storing charges, but professional charges.
TDS should be decuted after applying the provision relating to TDS ON PROFESSIONAL SERVICES.
It will not under contract ot Rent but Professional services.
Since the payment exceeds 30,000 TDS should be deducted.
1)Applicable Section 194C,Clarified by CBDT Vide Circular No.715,dated 08.08.1995
2)Gist of circular:-
Payments made to clearing and forwarding agents for carriage of goods are subjected to deduction of tax at source under section 194C, since unlike the travel agents, they are independent contractors. They would also be liable to deduct tax at source while making payments to a carrier of goods.
3)So TDS Applicable under Section 194C @ 2% or 1% depends on Status of Payee,,
Thanks & regards
Ganesh babu K
TDS Caluculated on What Amount?
Generally C&F Agents will incur expences and will get re-imbursement from us(Demurrage charges,THC Charges,Bill of lading charges,and handling charges and other expences incurred to discharge his duties)
**TDS Not applicable if he claimed re-imbursement expences in seperate bill,,And provided original bills paid by him
**Assesse can take Cenvat credit also based on original bills provided by Clearing Agent
The issue is whether TDS to be deducted or not be deducted is one and on other hand under what section if yes is a daunting task.
Lets not break up our head on this petty things, rather than we can use common sense on this.
What is a work done by a C & F agent would be basically to clear documents, represent on behalf of the company / enterprise. Now are these work covered under professional services...? is any professional degree required for this ...? or a certificate from any Notified institute is required to under take this work...? Th eanswer is no. The clearing , loading and obtaining documents is mere a contract for work to the C & F, who for a commission or service charge performs it.
By the nature of transaction it implies, the TDS section that would attract is 194C and not 194J as no professional fees is levied.
If the transaction falls under 194C than its evident that, whether TDS to be deducted or not depends upon the value of services received.
Hope my explaination provides more insight on this transaction. Do let me know your require further clarification on this...!