Custom House Agent liable to deduct TDS on payments to CFS Agents

Shanmugar Services Vs ITO (ITAT Chennai) As per the provisions of Sec.194C of the Act, any person responsible for making payment for any services needs to deduct TDS on such payment at the prescribed rate. From the plain reading of Sec.194C of the Act, it is abundantly clear that the person who makes payment is required to deduct TDS on such payment, whether the person makes the payment for himself or on behalf of the third party. In this case, the assessee is a Custom House Agent has made payment to CFS Agents on behalf of its customers and claimed that payment is in the nature of reimburseme...