We have booked ship space through third party (i.e foreign agency) for import of goods in india.Now at the time of payment for ocean freight to third party in foreign currency whether is it liable to TDS or not under section 195?
really appreciated if provide any legal language or case law.
TDS Not Required for Foreign Ocean Freight Payments to Non-Resident Shipping Agents Under Section 172. A query was raised regarding the applicability of Tax Deducted at Source (TDS) under Section 195 for payments made in foreign currency to a third-party foreign agency for ocean freight related to the import of goods into India. The response clarified that TDS is not required for payments made to an agent of a non-resident shipping liner for expenses such as ocean freight, terminal handling charges, demurrage charges, and similar expenses. This is in accordance with Section 172 of the Income Tax Act, 1961, and Income Tax Circular 723 dated September 19, 1995. (AI Summary)
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