Tds on freight payment to foreign supplier

Rohit Somani (Chief Account Officer) (35 Points)

25 January 2012  

We are the manufacturer of plastic moulded goods and import our major raw material (plastic granuels, other). Our foreign supplier (Seller) raise invoices and the currency we deals is USD and GBP. We received separate freight invoice from the supplier or some times same is showing separately in the invoice of rawmaterials.

Now my question is whether TDS u/s 195 is applicable on the freight amount ? (In case sepate inv and in case of single invoice showing freight amount)

What will the rate of TDS ?

Rohit Somani

Accountant