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Tds on air freight to non-resident supplier

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Vijay Gupta

34 Points Posted on 18 November 2015

Dear Professional Friends

Please advise following query;

M/s A is Firm importing material from China. Supplier of China, at the time of issuing Final invoice added AIR FREIGHT CHARGES in the bill separately. My query is whether tds is applicable on air freight payment particularly....? (Freight payment to foreign company) plz specify relevant article no.(if applicable) of DTAA.

Regards

Vijay K

Replies (3)

CA Amit kumar gupta

Practice

54 Points Posted on 18 November 2015

Article 8 of DTAA is applicable, it depends that assesse is resident of which contacting state. if income is taxed in india then tds is deductible otherwise if income is taxed in china so there is no need to deduct tax.

Karthik.V.Kulkarni

Chartered Accountant

766 Points Posted on 19 November 2015

Is the person engaged in transport business? If not then air freight wont require tds to be deducted if shown seperately.

Vijay Gupta

34 Points Posted on 05 December 2015

sir,

in continuation of above query, i want to clarify that my client is based in india & importing material from China. Thier China supplier charged Air Freight in bill i.e. actually they reimburse the air freight to their China supplier not directly to air freight company.

Please reply.