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Applicability of section 195
I have a query as follows:
My client is importing raw material from outside India on C.I.F basis Weather section 195 will be applicable in this case and withholding be done in this case?
Replies (2)
TDS is not required to be deucted for import of goods if the transaction is on principal to principal basis and further the foreign exporter does not have a permanent establishment in India. As per SC ruling. Provisions of section 195 and 206 AA do not get attracted on import of goods. However where import involves payment for royalty or technical servicess ( in case of import of machinery) the provisions of TDS get applicable.
can u please tell the name of Sc judgement and Even if goods are imported on cif basis section 195 is not applicable?
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