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Is TDS provision applies on ocean freight?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

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Open uri20170510 32134 1et5ppw?1494421765 answered

Dear Niru, The answer to your ques. depends on the fact that to whom the freight is being paid? . If the transporter is a resident,then, section 194C will be applicable as it covers transort charges paid for transport of goods/passengers by ANY mode of transport. . . However, if freight is being paid to a Non-resident,then, Section 44BB & section 172 becomes applicable. TDS on NR is deducted u/s 195. Section 44BB is for calculation of income & S.172 is for recovery of tax. Section 172 specifically overrides whole of the income tax i.e. NR engaged in shipping business need not pay any advance tax & TDS. . Hence,in case of NR transporter, NO TDS will be deducted u/s 195. . . Conclusion ========== In case of Indian transporter - TDS u/s 194C . In case of NR transporter - NO TDS

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Madhu H N commented 4 months ago

Hii Abhishek Can u please confirm on TDS Applicable on Export ocean freight on shipping agent company. Since the agent act on behalf of Non Resident company

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

yes tds is applicable on ocean frieght u/s 194C .

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Picsjoin 2017224123730582 answered

Hie Niru, Under section 194C, if payment is made to shipping agents of non resident ship owners, since the agent acts on behalf of non resident ship owner or Charterer, there is no TDS attracted., otherwise if paid to a resident TDS is attracted on freight payment.

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Madhu H N commented 4 months ago

Hiii Archana, Can u please confirm on TDS Applicable on Export ocean freight on shipping agent company. Since the agent act on behalf of Non Resident company.

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