Tds on shipping line business

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2015 whether TDS will be deducted on shipping line business or not if not deducted please mention reason why TDS is not deducted on shiopping line business.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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21 October 2015 Hi ....

As per Section 196 following persons are exempt from TDS provisions

(i) the Government, or

(ii) the Reserve Bank of India, or

(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or

(iv) a Mutual Fund specified under clause (23D) of section 10,

Therefore, no specific exemption is given to Shipping line business

Thank you

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 October 2015 https://www.caclubindia.com/experts/tds-on-freight-1997569.asp

Please refer reply given at above link for more details.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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23 October 2015 Further, Normally Shipping line assesses holds exemption certificate issued u/s 197.

This is also is main reason why normally TDS is not deducted in such cases. But it would be wrong to say TDS provisions are not applicable to them ..

Thank you...