Questions & Answers On: TDS on payments to C&F Agents

What is the TDS Obligation When Reimbursing Expenses To C & F Agent?
Subject: What is the TDS Obligation When Reimbursing Expenses To C & F Agent?
Category:  Income Tax
Asked by: Neeraj Sharma
Answered by:
Tags: , ,
Date: September 14, 2018
Excerpt of answer:

“The contract between the assessee and C & F Agent is a service contract which has not been specifically included in Explanation III below section 194C. In this view of the matter, the provisions of section 194C are not applicable to the payments to the C & F agents. If that is so, there was no obligation on the part of the assessee to deduct tax from the payments made to C & F agents