International freight

This query is : Open

Vinay (Querist)
Follow

07 January 2014 Is service tax and TDS chargeable on International Freight? Service provider is Indian company. Kindly elaborate.

CA DHEERAJ

CA DHEERAJ (Expert)
Follow

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

Message likes : 1 times

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