27 September 2010
IS THERE ANY TDS LIABILITY ARISES ON PAYMENT OF SEA FREIGHT TO LOGISTICS COMPANY IN INDIAN RUPEES FOR IMPORT MACHINERIES AND SPARES TO INDIA
28 September 2010
No, Read Section 172, which says that income of non resident shipping company from goods etc. shipped from any port in India is taxable u/s 172, hence the provision of section 194c as well as 195 is not applicable.
In case of import sea freight this is clearified by circular 732 of CBDT that any income of non resident shipping comapny from shipping operation during international traffic is not liable to TDS u/s 194c and section 195 is also not apply. but for this certain condition to be satified :
as per circular the marster of ship or agent of non resident shipping company will have to obtain a NOC from income tax authority which is given for 12 month period which can be extened year to year.
for tds expemption- income tax authority is specifically mentioning the name of vesel on the certificate to which the exemption is given.
so please ask such NOC from your Clearing farwarding agent.
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