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TDS payable or not on Import Freight ?

Valerian Dsouza (Manager Audit & Taxation) (413 Points)

07 March 2008

We are a Freight Forwarding Agents based in Mumbai, Pune Bangalore & Chennai.

We are Agents for Consolidating Major, M/s. BDP Netherlands BV, Netherlands, who are non resident foreign Company.

We are convassing business to M/s. BDP Netherlands BV, Netherlands, I mean Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from M/s. BDP Netherlands BV, Netherlands to India

M/s. BDP Netherlands BV, Netherlands raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.

Whether we are liable to Deduct TDS ? Please advise.

Thanks a lot

Valerian D'Souza, Manager Accounts, Excel Exim Services India Pvt. Ltd

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(Guest)

Originally posted by :Valerian D'Souza
"	We are a Freight Forwarding Agents based in Mumbai, Pune Bangalore & Chennai.We are Agents for Consolidating Major, M/s. BDP Netherlands BV, Netherlands, who are non resident foreign Company.We are convassing business to M/s. BDP Netherlands BV, Netherlands, I mean Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from M/s. BDP Netherlands BV, Netherlands to IndiaM/s. BDP Netherlands BV, Netherlands raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.Whether we are liable to Deduct TDS ? Please advise.Thanks a lotValerian D'Souza, Manager Accounts, Excel Exim Services India Pvt. Ltd	"

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(Guest)

Originally posted by :Valerian D'Souza
"	We are a Freight Forwarding Agents based in Mumbai, Pune Bangalore & Chennai.We are Agents for Consolidating Major, M/s. BDP Netherlands BV, Netherlands, who are non resident foreign Company.We are convassing business to M/s. BDP Netherlands BV, Netherlands, I mean Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from M/s. BDP Netherlands BV, Netherlands to IndiaM/s. BDP Netherlands BV, Netherlands raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.Whether we are liable to Deduct TDS ? Please advise.Thanks a lotValerian D'Souza, Manager Accounts, Excel Exim Services India Pvt. Ltd	"

Valerian Dsouza (Manager Audit & Taxation) (413 Points)
Replied 12 March 2009

Originally posted by :Guest

Originally posted by :Valerian D'Souza

"
We are a Freight Forwarding Agents based in Mumbai, Pune Bangalore & Chennai.We are Agents for Consolidating Major, M/s. BDP Netherlands BV, Netherlands, who are non resident foreign Company.We are convassing business to M/s. BDP Netherlands BV, Netherlands, I mean Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from M/s. BDP Netherlands BV, Netherlands to IndiaM/s. BDP Netherlands BV, Netherlands raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.Whether we are liable to Deduct TDS ? Please advise.Thanks a lotValerian D'Souza, Manager Accounts, Excel Exim Services India Pvt. Ltd
"

Please withdraw this message from the forum with immediate effect please .

Thanks & regards,

Valerian D'Souza

Excel Exim Services India Private Limited

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consultant) (403 Points)
Replied 12 March 2009

TDS u/s 194C is to be deducted on contracts. In your case, you are having the contract with the Netherland company and you need to deduct the TDS @ 2% + surcharge @ 10% + ed.Cess thereon @ 3%.

However, you are collecting the freight from your clients in India. Although it is reimbursement of freight but you need to deduct the TDS from the payments made to Netherland company. The TDS is to be deducted on bill amount and not on actual payments (i.e. the deduction of your commission is not to be considered for TDS).

I hope it will clear to you.

Valerian Dsouza (Manager Audit & Taxation) (413 Points)
Replied 13 March 2009

Please withdraw this message from the forum with immediate effect please .

Thanks & regards,

Valerian D'Souza

Excel Exim Services India Private Limited

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iqbal singh (article ) (26 Points)
Replied 14 June 2009

plz liable to Deduct TDS on import freight agent

ARTHUR MENDONCA (CEO) (22 Points)
Replied 28 October 2011

We are a Freight Forwarding Agents based in Mumbai, .We are Agents for various Consol agents in Europe, UK, USA, CHINA, FAST EAST who are non resident foreign Company. Our Clients avail Freight forwarding services(carriage of goods) by Air or Sea from vE\arious countries to India and our Agents raise Air freight bill on us on account of our Clients. We retain our commission and reimit their freight bill amount in foreign currency. We raise our bill on the clients and recover payments.Whether we are liable to Deduct TDS ? Please advise.Thanks

ARTHUR MENDONCA

ALLIANZ LOGISTIC

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