Dear Members,

Please clarify the Doubt. In the case of Exports and Imports We appointed a CHA, CHA is invoicing us 2 invoices one is Reimbursement Invoice i.e. debit note along with original invoice copies of 3rd party bill and Another is Service Invoice. In Reimbursement invoice, it is not charging GST, but for the reimbursement invoice we are getting the supporting invoices from the 3rd party in our name where the 3rd party is charging GST, and we are claiming that GST credit also. Now while making payment to CHA for those reimbursement charges shall we deduct TDS.

For Example. CHA is raising 2 invoices One is a debit note for Reimbursement and another for his services Taxable Invoice, So now how we are passing the entries for Reimbursement Invoice — Freight on Import Dr. GST credit Dr. To 3rd Party Cr. than 3rd Party Dr. To CHA Cr. than CHA Dr. To Bank A/c Cr. and for Invoice of CHA services – Freight Doc. Charges Dr. GST credit Dr. To CHA Cr. Than CHA A/c Dr. To Bank A/c Cr. To TDS A/c Cr.

In the case of the Reimbursement invoice, we are not deducting TDS because we are not paying directly to the 3rd party, we are paying to CHA through Reimbursement Bill. Please clarify, What is correct whether we need to deduct TDS on the amount paid to 3rd party through Reimbursement bill because we are taking GST Tax credit on 3rd party invoice or No need to deduct TDS because we are not directly making payment to 3rd party and we are paying through Reimbursement invoice to our CHA. For your information, our CHA is neither taking GST Credit on the 3rd Party invoice nor he is deducting TDS on it. and if TDS needs to be deducted it is whose responsibility to deduct TDS..
 
Supporting any case law if any please share the same
 
Thanks