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2018 (8) TMI 1625 - AT - Income TaxTDS u/s 194C - non deduction of tax at source (TDS) on warehousing & collection charges - addition u/s 40(a)(ia)- reimbursement of expenses - Held that:- Assessee has reimbursed the collection charges and pick up charges to the various transporters, and this fact can be verified from the copies of freight bills and ledger account of warehousing collection charges. The reimbursement of expenses for and on behalf of assessee is not covered under the provisions of section 194C These expenses are not liable to TDS as the term ‘contract’ is absent. These reimbursement of expenses were not made by the assessee towards any services rendered by the agent, but has been made to set off the expenses incurred by the agent on behalf of the assessee. We note that there is no element of ‘income’ in these transactions, it is just reimbursement of expenses incurred by the agent for and on behalf of assessee. Therefore, the assessee was not obliged to deduct tax at source - decided in favour of assessee.
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