Direct tax
This query is : Resolved
08 January 2014
Dear All....Pls advice me about the same. A firm makes a payament to person of hongkong for freight expenses and hongkong person does not have any PE inindia. then indian firm will be lible to deduct TDS U/s 195 or not,because no DTAA between india and hongkong .So pls advice the same & rate applicable.
08 January 2014
Payment made to Non residents or foreign companies for freight charges no need to deduct TDS U/s. 195 as per Circular No. 723/ 19.05.1995. Even if DTAA is not there between India and Hongkong TDS is not applicable.
https://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_172.htm
https://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_172.htm
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08 January 2014
Sir in this case indian company shall demand any certificate/NOC for non deduction of TDS from hong kong co. Because If any country having DTAA with India and DTAA provides that shipping co. will be liable to pay tax in the country in which he is a resident,then this case NOC will be required.So pls clarify the same.
08 January 2014
Section 195 never applicable to the freight payment to non resident / foreign company.
NOC is not required to take from others.
NOC is not required to take from others.
08 January 2014
ok....sir you mean NOC will be taken by shipping co by indian income tax office for for non payment of tax as per DTAA.
08 January 2014
As a service receiver you are not liable to make TDS on foreign freights.
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