Hi all,
My client is an exporter sending goods to foreign countries through ship as well as air through clearing & forwarding agents. For shipping charges, it is clearly mentioned that tds is not applicable as sec.172 covers it. What about air freight charges? Whether TDS is required to be deducted if the airline company is a foreign company? Pls clarify. Thanks in advance.
TDS should not be made on the Freight, only the service charges paid/ credit to C & F Agent are eligible for TDS (subject to limit)
hi.......
i also c.a. student.i want updation always.
Thanks Mr.Rajesh for your reply. But is there any supportive circular or provisions exempting the air freight. BEcause circular no.723 of 1995 which exempts shipping charges does not talk about air freight. Can you throw some more light on this.
Can some body, pls explain?
If you have confussion, deduct tds for safer side. deducting tds is not an offence instead of not deducting tds.
| Originally posted by :Raman | ||
| " | Hi all, My client is an exporter sending goods to foreign countries through ship as well as air through clearing & forwarding agents. For shipping charges, it is clearly mentioned that tds is not applicable as sec.172 covers it. What about air freight charges? Whether TDS is required to be deducted if the airline company is a foreign company? Pls clarify. Thanks in advance. |
" |
I think TDS is not required to be deducted on air freight charges as it is a reimbursement.
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