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Section 195

TDS 536 views 3 replies

Amit Kumar Sinha

Manager - Operation

29 Points Joined September 2009

Dear Sir,

Plz tell me that, if an Indian company pay to a Foreign company for FREIGHT charges, where there is no PE in India of that Foreign company, then TDS should be deducted? What should be mention in form 15 CB for comment?

Thanks & Regards,

Amit Kumar Sinha

Replies (3)

Arihanth Jain

Chartered Accountant

1226 Points Joined February 2010

Freight charges shall form part of business income and the same shall not be taxable in India if there is no PE.

In Point 14 (c) of the form 15CB, you may choose to quote as follows " The beneficiary does not have any permanent establishment in India. Consequently, the business income is not taxable in India as under Article 7 of the DTAA between India and XXX".