TDS on Freight

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CA. Kirti S. Ganatra (Querist)

17 November 2007 My question is whether TDS to deduct or not on Freight for goods exportd (Freight on Mumbai Port to destination abroad ).

R.V.RAO

R.V.RAO (Expert)

17 November 2007 UNDER SEC 194 C , IF PAYMENTS ARE MADE TO SHIPPING AGENTS OF NON RESIDENT SHIP OWNERS, ,SINCE THE AGENT ACTS ON BEHALF OF NON SRESIDENT SHIP OWNER OR CHARTERER,THERE IS NO TDS ATTRACTED.
OTHERWISE IF PAID TO A RESIDENT TDS IS ATTRACTED ON FREIGHT PAYMENT .(EVEN IF IT IS FRIEGHT TO PAY BASIS FOR GOODS RECEIVED.YOUR CASE IS NOT GOODS RECEIVED OF COURSE).
IT IS A DIFFERENT MATTER THAT EXPORT INCENTIVES MAY CONSTITUTE REIMBURSEMENT OF FRIEGHT PAID BY ELIGIBLE EXPORTERS.
R.V.RAO

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Querist)

19 November 2007 Thanks

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Querist)

23 November 2007 Hi Mr. Rao,

Can you please give me any circular or rule which clearly shows that TDS not attracted when it is reimbursement to a NR company by an indian shipping company and we are paying to Indian shipping company. It is urgent I have to attent case on monday morning.

Thanks

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