TDS on CHA Services

[Mahendra L]

Dear Sir.,

We are paying Clearing and forwarding charges, Terminal handling charges and, plantquarantine fees and transportation other charges to my Custom House agent, and also we paying Custom House Service charges.

Now we are the Partnership firm on which amount we have to deduct TDS . Please give me clarification

[CSSANJAY MALHOTRA]

TDS is to be deducted on the Total Amount (excluding Service Tax) invoiced by CHA.

[Ganeshan Kalyani]

Sir, TDS would be deducted on total amount excluding service tax.

Further if the bills pertaining to Clearing and forwarding charges, Terminal handling charges and, plantquarantine fees and transportation other charges paid to Custom House agent are there along with the main invoice then these charges would be pure reimbursement and TDS is not required to be deducted. TDS will be deducted only on Custom House Service charges paid to CHA. Thanks.

[Ganeshan Kalyani]

Sir, if there is no proper supporting to the charges borne by your CHA and is recovering from you then irrespective of the fact of reimbursement, TDS would be deducted on entire invoice value except on service tax component. Thanks

[Ganeshan Kalyani]

Sir, TDS deducted and paid by service receiver issued a TDS Certificate in Forrm 16A, based on this service provider can claim benefit. Hence to be on a safer side you may deduct on entire invoice value. Thanks

[CSSANJAY MALHOTRA]

Dear Sh. Ganeshan ji,

Even I am of the similar opinion as yours to deduct the same on Total (excluding Service Tax) to have compliance, if the transactions as suggested by your are not separately available.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Sanjay Malhotra.

[Ganeshan Kalyani]

Thanks for the support sir.

AI Summary

Partnership Firm Advised to Deduct TDS on Total Invoice Excluding Service Tax for Payments to Custom House Agent A partnership firm inquired about the correct method for deducting Tax Deducted at Source (TDS) on payments made to a Custom House Agent (CHA) for various services. The consensus among respondents was to deduct TDS on the total invoice amount, excluding service tax. If the invoice includes charges like clearing and forwarding, terminal handling, and transportation, these are considered reimbursements and may not require TDS deduction unless unsupported by documentation. To ensure compliance, it was advised to deduct TDS on the entire invoice value, excluding service tax, and issue a TDS certificate for the service provider's benefit.