TDS on Freight charges paid to Foreign Company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2011 our client has paid freight charges for importing books from uk & paid freight charges to uk company in foreign currency, should our client required to deduct TDS on such amount

Arihanth Jain

Arihanth Jain (Expert)
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18 July 2011 Freight charges should form part of business income of the foreign company.

Such income shall be taxable in India if the foreign company has a permanent establishment (PE) in India. So tds is deductable only if PE exists.