TDS on sea freight

[KISHOR DATTANI]

TDS ON SEA FREIGHT PAID TO AGENCY

AI Summary

Clarification on TDS applicability: Non-resident sea freight payments exempt under Section 173; resident payments taxable under Section 194C. A query was raised regarding the applicability of Tax Deducted at Source (TDS) on sea freight payments made to an agency. One participant noted the need to determine whether sea freight is taxable in India and the status of the agency involved. Another participant clarified that payments to non-residents are not subject to TDS under Section 173 of the Income Tax Act, 1961, while payments to residents are subject to TDS under Section 194C.