applicability of tds on freight payment to foreign companies

Save Share

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 HELLO EVERYONE ,

I HV A QUERRY REGARDING APPLICABILITY OF TDS ON FREIGHT REMITTANCE TO A FOREIGN CARGO (IT INCLUDES BOTH AIR CARGO AS WELL AS SHIPPING CARGO) COMPANY IN US WITH RESPECT TO IMPORT OF GOODS.....

KINDLY HELP IN SOLVING IT....
ALSO I M MORE CONCERNED WITH AIR CARGO......

THANK YOU

Jyotindra Thakar

Jyotindra Thakar (Expert)
Follow

21 January 2011 Please refer CBDT Circular No.723 Dtd.19/05/1995.
Payment of freight to foreign companies is exempted from deduction of TDS under section 172(1) of IT Act.
Provisions of 194C & 195 of the IT Act has no application in respect of payments made to towards freights to foreigh companies.

Message likes : 1 times

C.A.Javid Patel

C.A.Javid Patel (Expert)
Follow

21 January 2011 Please just confirm that now the TDS is not applicable to even indian companies.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2011 Thank you for the reply.....
i hv gone through the provisions mentioned by u but i hv still doubts regarding section 195.... as i m not clear with its explanation, i want to know clearly whether it excludes freight payment completely or not.....
also do u know about any section which deals with air companies with respect to same situation......

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2011 AND JAVID TDS IS STILL APPLICABLE ON INDIAN COMPANIES.... PROVISIONS OF SECTION 194C DEALS WITH IT...... THERE IS NO CHANGE IN IT TILL NOOW......

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now