Applicablity of tds on import purchase of trading goods

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This query is : Resolved

Chandan B.patel (Querist)

10 August 2011 Sir,

Whether TDS u/s 195 or any other section is attracted for deduction of tax at source for payments made to foreign party on account of purchase of timber for trading in India ?

A.O. has claimed that its a payment to a foreign party, hence section 195 of I.T.Act will be attracted, as this section says for " Other sums ".

Kindly guide me in this regard.

CA Navin Jain

CA Navin Jain (Expert)

10 August 2011 TDS under sec 195 is not applicable on Purchase of goods

Chandan B.patel

Chandan B.patel (Querist)

10 August 2011 Can you please give me some more references of non applicability of TDS on import of trading goods. Can some case laws or circular reference can be given in this regard. Please give so.

CA Navin Jain

CA Navin Jain (Expert)

10 August 2011 since you has to paid custom duty cvd and additional duty on purchase of goods then no need to deduct tds

Chandan B.patel

Chandan B.patel (Querist)

10 August 2011 Thanks a lot

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