International freight
This query is : Open
07 January 2014
Is service tax and TDS chargeable on International Freight? Service provider is Indian company. Kindly elaborate.
CA DHEERAJ
(Expert)
08 January 2014
YES
IF SERVICE RECEIVER IN NTT, THEN AS PER POPR 2012 SERVICE PROVIDER IS LIABLE TO PAY SERVICE TAX (NO RCM APPLY) ON FREIGHT
AND TALKING ABOUT TDS
IN TRANSPORTATION CASE IF TRANSPORTER PROVIDE PAN NO THEN NO NEED TO DEDUCT TO TDS, BUT PAYMENT IS MADE OUTSIDE INDIA THEN 40a(i) SECTION APPLY ANY SAY IF ANY PAYMENT MADE OUTSIDE INDIA OR NRI THEN TDS IS MUST TO BE DEDUCT
ANALYSIS OF SECTION 40(A)(i)
Disallowance under section 40(a)(i) shall be attracted if:
condition 1. the amount paid or payble is interest, royalty, fees for technical services or any other sum chargeable under IT Act. the aforesaid sums must be taxable inthe hands of the receipents under the IT Act.
condition 2. The aforesaid sum is paid/payable
(i) outside india to a non-resident
(ii) in india to a non-resident or a foreign company
condition 3. Tax is deductible at source on the aforesaid payments
IF SERVICE RECEIVER IN NTT, THEN AS PER POPR 2012 SERVICE PROVIDER IS LIABLE TO PAY SERVICE TAX (NO RCM APPLY) ON FREIGHT
AND TALKING ABOUT TDS
IN TRANSPORTATION CASE IF TRANSPORTER PROVIDE PAN NO THEN NO NEED TO DEDUCT TO TDS, BUT PAYMENT IS MADE OUTSIDE INDIA THEN 40a(i) SECTION APPLY ANY SAY IF ANY PAYMENT MADE OUTSIDE INDIA OR NRI THEN TDS IS MUST TO BE DEDUCT
ANALYSIS OF SECTION 40(A)(i)
Disallowance under section 40(a)(i) shall be attracted if:
condition 1. the amount paid or payble is interest, royalty, fees for technical services or any other sum chargeable under IT Act. the aforesaid sums must be taxable inthe hands of the receipents under the IT Act.
condition 2. The aforesaid sum is paid/payable
(i) outside india to a non-resident
(ii) in india to a non-resident or a foreign company
condition 3. Tax is deductible at source on the aforesaid payments
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