Payment to non-resident Agents by Freight Forwarders

Mohan Saxena (Manager Accounts) (24 Points)

29 June 2009  

W.e.f. 01/07/2009, rules for making remittances to Non-Residents are going to change. We are Freight Forwarders and making remittances of Freight Collected on Inward/Outward shipments and remit the same to our Consolidator abroad.  Earlier, Freight payment to Non-Resident was not covered under section 195 and no TDS was applicable.  Is the same system will applicable in future also or we need to deduct TDS on Freight payments to our Non Resident Agents.