Is TDS necessary? Pls clarify.

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Raman

41 Points Posted on 19 July 2008

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.

Replies (7)

Guest

Posted on 19 July 2008

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)

atul kumar soni

student

95 Points Posted on 19 July 2008

hi.......

i also c.a. student.i want updation always.

Raman

41 Points Posted on 19 July 2008

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.

Raman

41 Points Posted on 21 July 2008

Can some body, pls explain?

RamaKrishnan

Student

79 Points Posted on 21 July 2008

If you have confussion, deduct tds for safer side. deducting tds is not an offence instead of not deducting tds.

Vipin

Service

22 Points Posted on 30 August 2008

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.	"