applicability of tds on freight payment to foreign companies

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Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 HELLO EVERYONE ,

I HV A QUERRY REGARDING APPLICABILITY OF TDS ON FREIGHT REMITTANCE TO A FOREIGN CARGO (IT INCLUDES BOTH AIR CARGO AS WELL AS SHIPPING CARGO) COMPANY IN US WITH RESPECT TO IMPORT OF GOODS.....

KINDLY HELP IN SOLVING IT....
ALSO I M MORE CONCERNED WITH AIR CARGO......

THANK YOU

Jyotindra Thakar

Jyotindra Thakar (Expert)
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21 January 2011 Please refer CBDT Circular No.723 Dtd.19/05/1995.
Payment of freight to foreign companies is exempted from deduction of TDS under section 172(1) of IT Act.
Provisions of 194C & 195 of the IT Act has no application in respect of payments made to towards freights to foreigh companies.

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C.A.Javid Patel

C.A.Javid Patel (Expert)
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21 January 2011 Please just confirm that now the TDS is not applicable to even indian companies.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2011 Thank you for the reply.....
i hv gone through the provisions mentioned by u but i hv still doubts regarding section 195.... as i m not clear with its explanation, i want to know clearly whether it excludes freight payment completely or not.....
also do u know about any section which deals with air companies with respect to same situation......

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2011 AND JAVID TDS IS STILL APPLICABLE ON INDIAN COMPANIES.... PROVISIONS OF SECTION 194C DEALS WITH IT...... THERE IS NO CHANGE IN IT TILL NOOW......