TDS applicability on commission by arranging for transportation outside India from japan

Dear Experts,

I need advice on below mentioned case, thank you in advance to you.

My Indian company (A’ company) had received Asset & Inventory from Japan holding company (AB Holding).

For sending material to India, Holding company has appointed transport arrangement company (X’Company) who is handling to contact transport company in Japan and do shipment to India.

Now, Transport arrangement company (X’Company) had charged transport arrangement Fee to Holding Company in Japan and Holding company had charged same amount reimbursement invoice to Indian company.

Now, My question is that, Is this transaction taxable in India ? and Which Act rate ?

because i want to make payment to holding company.

Please guide us.

thank you.

Replies (2)
TDS on what ?
A company (Indian) is re-imbursing to AB Holding @ Japan - transportation charges paid by holding company.

I don't think 195 section applies to company or a foreign company .

Payment appears to be not in the form of Commission but it's a payment for shipment charges alongwith service charges.

In my view, TDS is not applicable.

In above case, Transport arrangement company(X'Company) has appointed third party as transporter in Japan and X'Company is only mediator for arrangement.

 

Now, X'Company has charge Transport arrangement Fee to holding company in Japan.

So, I still confuse whether X'Company service can consider in Professional Fee or not ?

Thanks for your advice

 

 

 

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