Direct tax

This query is : Resolved 

08 January 2014 Dear All....Pls advice me about the same. A firm makes a payament to person of hongkong for freight expenses and hongkong person does not have any PE inindia. then indian firm will be lible to deduct TDS U/s 195 or not,because no DTAA between india and hongkong .So pls advice the same & rate applicable.

08 January 2014 Payment made to Non residents or foreign companies for freight charges no need to deduct TDS U/s. 195 as per Circular No. 723/ 19.05.1995. Even if DTAA is not there between India and Hongkong TDS is not applicable.

http://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_172.htm

08 January 2014 Sir in this case indian company shall demand any certificate/NOC for non deduction of TDS from hong kong co. Because If any country having DTAA with India and DTAA provides that shipping co. will be liable to pay tax in the country in which he is a resident,then this case NOC will be required.So pls clarify the same.


08 January 2014 Section 195 never applicable to the freight payment to non resident / foreign company.

NOC is not required to take from others.


08 January 2014 ok....sir you mean NOC will be taken by shipping co by indian income tax office for for non payment of tax as per DTAA.

08 January 2014 As a service receiver you are not liable to make TDS on foreign freights.




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