TDS payable or not on Import Freight ?

TDS u/s 194C is to be deducted on contracts. In your case, you are having the contract with the Netherland company and you need to deduct the TDS @ 2% + surcharge @ 10% + ed.Cess thereon @ 3%.

However, you are collecting the freight from your clients in India. Although it is reimbursement of freight but you need to deduct the TDS from the payments made to Netherland company. The TDS is to be deducted on bill amount and not on actual payments (i.e. the deduction of your commission is not to be considered for TDS).

I hope it will clear to you.

Please withdraw this message from the forum with immediate effect please .

Thanks & regards,

Valerian D'Souza

Excel Exim Services India Private Limited

plz  liable to Deduct  TDS on import freight agent

We are a Freight Forwarding Agents based in Mumbai, .We are Agents for various Consol agents in Europe, UK, USA, CHINA, FAST EAST who are non resident foreign Company.  Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from vE\arious countries to India and our Agents  raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.Whether we are liable to Deduct TDS ? Please advise.Thanks

ARTHUR MENDONCA

ALLIANZ LOGISTIC

91 22 28304532