Deduction of tds

I have come across a situation where I have not been able to make up my mind regarding the taxability of the following transaction:

  1. C Pvt. Ltd. (hereinafter referred to as C), a company incorporated in India, imported some goods from a foreign supplier X .
  2. As per the agreement between C & X states that the freight charges are to be paid by C, and if X pays the amount of freight, C shall reimburse that amount to X on immediate basis.
  3. The freight charges are paid bt the foeign supplier X to a Logistics Company supplying goods by Air. Now, while making reimbursement of these freight charges, are we required to with-hold tax? f yes, as per which section, and if there is a case law in this regard, please share.

 

Replies (1)

sec195 check the Incoterms probably it should be C.I.F

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