Tds on port dues
Bhupesh Pradhan
(Querist) 26 September 2012
This query is : Resolved
Dear All,
Is Custom House Agent (CHA) liable for Tax deduction on Port charges i.e Calcutta Port, Haldia Port etc. ? Please note that Calcutta Port, Haldia Port are not Govt organisation. CHA disburse the port charges to Port authority on behalf of its clients, and CHA issue bills to its clients (without making any profit on port charges) and get 100% reimbursement from its clients for port charges.
My question is, whether CHA is liable for tax deduction on Port authority?
Bhupesh
M V Gupta
(Expert) 27 September 2012
You may have to consider the issue from two angles: 1. If the client on whose behalf u are paying the charges is an individual, TDS need not be effected.If the client is a company, coop Society or partnership etc then you may have to deduct the TDS and deposit it under the TAN number of the client. 2. The other angle is whether the Port Authority is exempt from the provisions of the IT Act. I feel it is not exempt.If it is exempt, then TDS need not be effected; but this is subject to the condition that the PA produces a certificate to that effect from the IT authorities.
