Remittance of Freight on Imports to Freight Forwarder in USA

Dear All,
 
Kindly give your valuable advise on the matter:
 
We have to pay the Freight charges - amounting to USD 3485/- (Including Ocean Freight as well as Inland Haulage from Mumbai to New Delhi & others) for our Import Shipment by remitting the same to USA thru proper Banking channels to the freight forwarder company of USA."
 
Kindly advise us the applicability of TDS and Service Tax as well as if any other approval / NOC required from the Income Tax Department or any other authority.
 
1) The USA Freight Forwarder executes the consignments in India thru agents. Will this effect the residence status ?
 
2) If it is mandatory to take NOC from IT.
 
3) We are already registered with Service Tax Deptt. under Transport of Goods by Road. Will it require to get fresh registration.
 
Thanks & Best Wishes
 
Ganeshi Lal Agarwal
Replies (3)

Dear Ganeshi Lal,

1) I didn't get ur First question

2) Tax Clearence is not mandatory but it is advisable to be on safer side.

Further, TDS will not be applicable because the Income is not taxable in India

Article 8 of DTAA with USA - Shipping and air transport - Profits derived by an enterprise of a Contracting State(i:e USA) from the operation by that enterprise of ships or aircraft in international traffic shall be taxable only in that State(i:e USA).

Thank you Mr. Amir. My First question is 1) The USA Freight Forwarder executes the consignments in India thru agents. Will this effect the residence status of freight forwarder of USA for TDS purpose? Thanks

Dear Ganeshi Lal,

The agents which u r talking about are the employees of the US Freight Forwader...Then yes it will affect otherwise not...

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