Is it TDS applicable on "Packing & Handling" of Goods on Import

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This query is : Resolved

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This discussion addresses whether Tax Deducted at Source (TDS) is applicable to 'Packing & Handling' charges for imported goods, particularly when paid to foreign vendors in foreign currency. The consensus suggests that if these charges are incurred outside India and are considered part of the import of goods, TDS is generally not applicable, and separate 15CA/CB forms are not required for these specific components. However, banks may be requesting these forms, leading to confusion.

Vijay Watere

Vijay Watere (Querist)

17 April 2023
Dear Sir,

we have china vendor where we always purchase Import materails in foreign currency but now a days while payment to vendors Banks asking for 15CA & CB on "Packging & Handling" and telling us to make separate payment against this case.

my query is, Is TDS applicable on "Packing & Handling" of Goods on Import

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 April 2023 Package and handling charges incurred outside India is part of import of goods make the payment along with import of goods no 15CA 15CB required.
TDS not applicable on such expenses related to outside India.

Vijay Watere

Vijay Watere (Querist)

17 April 2023 do you have any circular because bank is not listening

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