TDS

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2011 Is TDS need to be deducted in case payment is made to foreign shipping line company for freight paid in case of import of goods to India?
Sec 172 is not applicable here(that is in case of goods sent from India).
Is sec 195 applies here? we can't say here the income is chargaeble to tax in India?

Need a reply alongwith relevant provisions immediately.........

Thanks

Regards
ROHIT GUPTA

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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28 January 2011 Sec 195 deals with Tax deduction at source for any payments made to any Non-Resident .
However payment made to either Non-Resident Shipping companies directly or to their Resident agents or representatives does not come under the purview of either Sec 194C or Sec 195 by virtue of Sec 172 (1) which inter-alia states that "The provisions of this section shall, notwithstanding anything contained in the other provisions of this Act, apply for the purpose of the levy and recovery of tax in the case of any ship, belonging to or chartered by a non-resident, which carries passengers, livestock, mail or goods shipped at a port in India" . Hence the levy and recovery of Tax from Non-Resident Shipping will only be governed u/s 172 and not 194C or 194I. Kindly also see Circular No. 723 dtd 19-09-1995 of CBDT , which further clarifies the same.
Since No TDS provision is applicable on Non-Resident Shipping Companies

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2011 Thanks Shailesh,,
but sec 172 is applicable in case of Goods exported out of India using Foreign shipping line ..

here I am asking about in case we got the imports done using foreign shipping line....

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