TDS on Custom Clearing Charges paid to Resident

[PANKAJ GUPTA]

Dear Sir,

We are manufacturing unit.

Our Custom Clearing Agent for import of goods is giving their separate Invoice for the reimbursement of expenses incurred by him on our behalf with supporting bills paid by him such as CMC Charges, Custom Duty, D.O. Charges, Stamp Duty, C.F.S. Charges, Chartered Engineer Charges, Transport Charges , Delivery Charges, Labour Charges for examination,, Opening/Repacking/ Sealing Charges, Crane Loading/ Unloading Charges etc. he is raising this bill without service tax on all above items except Delivery Charges.

Please suggest us whether TDS liability will be attracted on above bill. Please note that he is also giving separate invoice for his Agency Charges with Service tax and we are deducting TDS on agency charges only.

Regards

Pankaj Gupta

M-09212401641

AI Summary

TDS on reimbursement of expenses depends on whether amounts are disbursements or taxable receipts requiring withholding. Whether TDS applies to amounts billed by a resident custom clearing agent for expenses incurred on the principal's behalf depends on whether those amounts are reimbursements/disbursements (supported by third party bills and not income of the agent) or constitute receipts for services. Key indicators include separate invoicing, presence or absence of markup, the agent's role as principal or agent, and matching supporting bills; agency/service charges separately invoiced and taxed are already subject to TDS.