Payment of Freight to Foreign Party for import of goods

This query is : Resolved

Ajay Kumar Choudhary (Querist)
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22 August 2009 Dear Sir,
We would like to seek yuur valuable advice :

We have imported Machinery from USA
The deal is FOB Basis
We have to pay Sea Freight to Foreign Party
Our Question
1 IS TDS deductibe in that Acount Under Section 195 is applicable for deduction ?
2. If yes, the what is rate of deduction ?
3. Form 15CA and 15CB is applicable ?
Thanks and regards

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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22 August 2009 TDS is applicable.
Check DTAA agreement with usa. The rate as per dtaa is applicable. If specific item is not there in dtaa then section 195 is applicable.
15CA and 15CB are applicable.