T.D.S

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AVINASH KAMBLE (Querist)
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05 February 2010 We are importing some raw material from china and we want to pay some charges
1.) Clearing and forwarding Charges
2.) Shipping charges

my Query is
1. T.D.S. applicable for both
2. pls give me TDS Rate and under Which Section for Both

Thanks and Regards

Avinash Kamble

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 February 2010 Clearing & forwarding agent payments are coming under sec,194C rate is 2 % for corporate deductees and 1 % for non -corporate deductees

Shipping charges also covered under sec.194C Only and rate is 2% for corporate and 1% of non corporate deductee

CA Prashant Gupta

CA Prashant Gupta (Expert)
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05 February 2010 in this case for point (1) I agree with experty
But for point (2) it should be check if shipping company is NRI then TDS will be u/s 195. but if it is indian company then it is 194C

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 February 2010 Yes.Shipping charges payment to Non -resident is cover U/s.195

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