TDS on Freight payment on export.

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SHAAN (Querist)
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04 September 2010 1. Can any one tell me with (supporting circular)whether a person (tax audit) is liable to deduct TDS on ocean freight paid in case of Exports of goods.

2. Whether any TDS is to be deduct on Customs Clearence Charges.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 September 2010 Payments to clearing and forwarding agents - Payments made to clearing and forwarding agents for carriage of goods are subjected to deduction of tax at source under section 194C, since unlike the travel agents, they are independent contractors. They would also be liable to deduct tax at source while making payments to a carrier of goods—Circular : No. 715, dated 8-8-1995.

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SHAAN

SHAAN (Querist)
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05 September 2010 Aditya,

Thanks for your reply, but this circular seems to be very old. Is there any modification/ Amendments to this circular relating to "Clearing & Forward agents" after that date.

Moreover my query is

1.If the bill of clearing agent includes following items
a) Freight payment to transporter/shipping line(Indian rupees)
b) Commission in clearing agents bills
c) loading and unloading charges
d)Documentation charges
e) courrier charges
f)Ship D.O charges
h)Labour charges for examination
i)sorting and shifting expenses
j) Bill of Entry /shipping bill charges

and on all the total amount the clearing agent has charges service tax then pls advice on which of the above heads the company needs to deduct TDS and under which section.
I will be thankful if you answer my query.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 September 2010 There is no modification in the circular. Howmuch ever the circular may be old the same is still binding.

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