CAclubindia Forum : TDS on Freight - CAclubindia - Interactive Platform for Finance Professionals & Taxpayers , Chartered Accountant ,CAs India, CA india ,Company Secretary ,CS, Cost Accountants , MBA and Finance Professionals. ICAI

Discussion > Income Tax > TDS on Freight

Pages : 1,


M.Govindaraja Charteres Accountants [ Scorecard : 24]	ON : 21 August 2008 at 18:42
	A logistic company (D Indian Company) has entered into contract with another logistic company out side India. ( K Korea Company). For the customers both will do the services and share the profit 50:50 Now the K Korean Company has obtained a work to send the goods to India and Indian company has cleared the goods and delivered to the Concern party. The concern party has paid the freight to the D Indian Company. The D Indian Company has to pay back to K Korean Company. Actually K Korean Company has paid the freight in Korea. The Commission on the freight is shared @ 50:50. Hence after deduction of the share the D Indian Company will remit to K Korean Company The issue is whether TDS has to be deducted or not on the freight payment? if not under which provision. As per DTAA articles 8 &9 when the freight payment to Airlines or the transporter only exempted.

Let us grow stronger by the mutual exchange of Knowledge