TDS on Ocean Freight

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Ankit (Querist)
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29 January 2011 Hi,
There is a indian Pvt. co. who charge ocean freight on import from Another indian Pvt. co.

My question is that should co. deduct TDS on ocean freight paid by it and what rate.

Reply soon..............

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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29 January 2011 Your question is not clear. Plese cleraly mention who is making the payment to whom.

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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30 January 2011 virtue of Sec 172 (1) which inter-alia states that "The provisions of this section shall, notwithstanding anything contained in the other provisions of this Act, apply for the purpose of the levy and recovery of tax in the case of any ship, belonging to or chartered by a non-resident, which carries passengers, livestock, mail or goods shipped at a port in India" . Hence the levy and recovery of Tax from Non-Resident Shipping will only be governed u/s 172 and not 194C or 194I. Kindly also see Circular No. 723 dtd 19-09-1995 of CBDT (attached) which further clarifies the same.
Since No TDS provision is applicable on Non-Resident Shipping Companies , Hence the question related to DTAA is not relevant.

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Ankit

Ankit (Querist)
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31 January 2011 respected sir,
Actually i am asking about the Indian co.
both co.'s are Indian there is no question of non resident.
Is TDS deduct on ocean freight charged by Logistic pvt. ltd. (Indian co.)

Ram Avtar Singh

Ram Avtar Singh (Expert)
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02 February 2011 TDS not applicable on foreign shipping agency or his authorize agent. if indian company is agent then TDS not applicable.

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