TDS on sea freight

[KISHOR DATTANI]

TDS ON SEA FREIGHT PAID TO AGENCY

[Surender Gupta]

Before deciding the issue you have to see that whether sea freight is taxable in India or not. What is the status of agency etc.

THESE AYMENTS ARE COVERED UNDER SECTION 173 OF THE INCOME TAX ACT 1961, HENCE AYMENT T NON RESIDENCE ARE NOT SUBJECT TO tds. iN CASE OF PAYMENT TO RESIDENCE THE PAYMENT ARE SUBJECT TO TDS U/S 194C

AI Summary

TDS on sea freight depends on taxability and recipient residence; non residents may not attract withholding obligations.
TDS on sea freight paid to an agency depends on whether the freight is taxable in India and on the agency's residence status; payments to non residents are reported as not subject to TDS, whereas payments to resident agencies are subject to TDS under provisions governing contract/transport payments.