TDS on Ocean Freight on Import of Capital Goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2009 Dear Sir,
We would like to know from you :

We have imported Machinery from ITALY
The deal is FOB Basis
We have to pay Sea Freight to Foreign Party
My Question is ?
A) IS TDS applicble in our case. Section 195 is applicable for deduction ?

B) Form 15CA and 15CB is applicable ?

Thanks/Regards

C.A.Amitabh Gupta

C.A.Amitabh Gupta (Expert)
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23 November 2009 A)-TDS not applicable in your case as freight to a foreign shipping company- as per circular 723 dt.19/09/1995

b)Yes, Form 15 CA & 15CB applicable