TDS on 172

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2009 paying ocean freight to agent of NRI alongwith THC and other charges.Section 172 exempts ocean freight from TDS but what about other charges??? such as THC etc. Is TDS deductible on such other charges @ 2 % or these are also exempt u.s 172

Sunil

Sunil (Expert)
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14 November 2009 It depends on who is billing for the charge. If the billing is from the Shipping Line for all these charges then section 172 is applicable even if you pay via the agent of the shipping line (not clearing and forwarding agent or freight forwarder). Please take from the Shipping Line the certificate that they issue. Freight Forwarders are not entitled to this section. We had that problem and now we take certificate from all shipping companies that section 172 is applicable to them. It is signed by the AO who is doing their assessment under this section. If the Liners Agent is separately collecting those charges on their own bill then you need to deduct for THC and transportation etc.