02 June 2011
Yes, TDS is applicable on Terminal handling Charges u/s 194C. As per CBDT Circular the ocean freight paid to foreign shipping companies is not liable to TDS.
Earlier we would ask the CHA/Forwarder to give two seprate bills one for Freight and other for THC etc. But now, with the amendment to sec. 194C, in the Budget, one composite bill would be enough. Tax on THC and other services would be deducted
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