T d s us 94c

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MAKARAND DAMLE (Querist)
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31 July 2021 In Terms of notification FEMA 10 (R)/2015-RB of January 21,2016 payment is made through EEFC account maintained with India Bank in convertible foreign exchange towards sea freight

My question is whether TDS us 94C is applicable to above payments ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 July 2021 As per CBDT circular 723 of 1995, foreign shipping companies or their agents are exempted from TDS under section 194C – payment to contractors .

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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02 August 2021 The parties to whom freight payment is made are Indian Freight Forwarders

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2021 They will be considered as shipping agents TDS not applicable.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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02 August 2021 THEY ARE NOT DIRECT AGENTS OF FOREIGN SHIPPING LINE IN TERMS OF SECTION 172.
THEY ARE MIDDLEMEN BETWEEN EXPORTER AND SHIPPING LINE REPRESENTING FOREIGN SHIP OWNERS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2021 Middlemen and the agents are one and the same. They are directly dealing with ship owners.
Is it reimbursement of freight bill.

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