Tds on payment of ocean freight to foreign companies not having pe in india

CA Anurag Lal (1 Points)

26 July 2018  

Dear Sir,

My client is proposing to pay ocean freight to a foreign company who does not have PE in India. Nature of payment is "ocean freight for export" 

No PE declaration is obtained from beneficiary. Payment to be done in US$ through EEFC account.

Does client under obligation to deduct Tax - that is TDS from this payment?

Please guide.

regards

Anurag Lal