Whether TDS will be deducted on Ocean Freight, if it is paid to resident.
5 Replies
SURENDRA MOROLIA
(SERVICE)
(50 Points)
Replied 01 December 2009
Yes ,u/s 194 C TDS is required to be deducted.
Surendra Morolia
Sunil
(Trader)
(2611 Points)
Replied 01 December 2009
194C for payment to a resident doing business of shipping. Business of shipping is carriage of goods, livestock and passengers against payment of freight charges / fare. It would also include charter for carriage (say carrying of full ship load of cargo on a FIO / LIFO / Liner basis or say full ferryy load of passangers on return journey between point A & B). Here the person doing shipping business is the one at risk. These are all basically charters but not hire. However, if you charter a ship without crew and put in your own crew to run the ship, then you have assumed the risk of shipping business and you have to deduct TDS u/s 194I to the owner of the ship. Those who use your service for carrying cargo / livestock / passengers will deduct TDS u/s 194C with you.
MITU....
(ARTICLE Assistant)
(210 Points)
Replied 01 December 2009
YES U/S 194C SEE THAT U HAVE CONTRACT AGREEMENT ALSO
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