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TMI BlogTDS on Custom House AgentX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, We are a Licenced Custom House Agent billing our clients for services rendered (Clearance of Import cargo through customs and sdespatching to client). A new client is deducting TDS under 194J @ 10% whereas all our other clients are deducting TDS under 194C @ 2%. On enquiring, they say that their auditors have advised them to deduct and have asked us for the rule of Income Tax where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in it is mentioned that CHA's come under contractors ie: 194C . Please advise. Regards, Antonio - Reply By SANJIV KOTHARI - The Reply = TDS is deductible under section 194C only. C F agent act as a link between the manufacturer and the consumer. He act as a contractor and execute work on behalf of manufacturer/exporter. Ask your client to give reason in writing for deducting u/s 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4J . - Reply By KR Ramesh - The Reply = Dear Antonio We are also presently having the enquriy u/s 201 , upon Scruitiny of accounts the tax officer has raised the query why tds on CHA has been deducted @2% as this should fall under section 194J . He said the CHA on behalf of client do the following service mainly freight charges, warehouse charges, survey charges, transportation cost , inspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction charges etc. He says these service come under the category of technical service thereforre section 194J would be applicable. Regards Ramesh - Reply By SUSHILKUMAR GUPTA - The Reply = u/s 194J is applicable to technical and proffessional who are qualified as to their proffessional services,pls note that CHA is not yet classified under this catagory but,this is going to be done soon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maybe by october 2012,once this catagory is listed under proffessional then 194J will apply you can get details from "legal practitiomers[regulations and maintanance of standards in professions.protecting the interest of cliants and promoting the rule of law],act 2010 this act is under discussion for establishment of legal services board this act has proposd to include customs clearing agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as legal proffessionals u/s that once this act is enacted CHA service will be 194J till then it is contract and subcontract as every cliant enters a contract for the duties and value of the service a difference can be drawn between legal proffessionals who deal with the DIRECT TAX LAWS AND LEGAL ENFORSMENT LAWS reg sushil gupta - Reply By RAJU RAMACHANDRAN ramachandran - The Reply = This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confusion really has been triggered mainly for two kinds of classifications for the service in vogue with man customers. These are - Some firms treat the C H A as "Consultants" and some as Professionals under this 10 % TDS ( 194 J ) is being deducted. Whereas these firms should rightly be classiefied under 194 C only as they are not doing any professional services offering consultancy or expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion but clear the consignments by submitting required papers collected from the importeres/exporteres and see that these files are moved from one table to another table. In all most all cases they are serving as only conduit for bribes. Regards Rajuramachandran - TDS on Custom House Agent - Query Started By: - Andrew Antonio Fernandez Dated:- 9-1-2012 Income Tax - Got 4 Replies - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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