Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2013 sec 172 overrides prov. of 194 (c) so if payment of freight is made to NR than TDS need not to be deducted but tax is to be collected according to sec 172 mechanism.....that is scenario in case of export...

But in case of import whether TDS is deductible on import charges( ocean freight and do charges etc.)
1) paid to resident agent of non resident.....
2) paid to non resident
3) paid to resident

please cover all cases in reply...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 October 2013 You are confusing between assessment under 172 with TDS provisions under 194C.

172 applying to the shipping company. Whereas 194c applies to deductors (which could be shipping companies or not).

Anyways, payments made to residents will be covered under 194C. Payments made to non-residents is covered under 195.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 i agree that tds prov apply to deductor and sec 172 applies to non resident deductee ... but that section 172 has overriding effect over TDS provision so .... in case of export freight paid to non resident payee is not required to deduct tds if payment is made to non resident or his agent.......that is well settled

but my question is regarding import freight .... whether position is same for import also.... or we need to deduct taxes even if payment made to non resident or his agent.......

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