TDS on Air Freight (included in supplier's bill) in case of imports

[VIJAY GUPTA]

We are paying to our foreign supplier in advance through proforma invoice which was excluding freight. Now they raised commercial invoice where freight charges in included and Bill of entry also bears the same value as on commercial invoice. So, there is an difference between proforma invoice and commercial invoice ( the freight amount ).

Now we have to pay the freight only to our foreign customer. Is there any TDS liability persists?

Sir plz also let me know relevant circular/ /notification no., which i can refer.

Thanks

AI Summary

TDS Applicability on Air Freight Charges in Supplier Bills: Clarification and Discussion on Reimbursement Scenarios A discussion on a forum addresses whether Tax Deducted at Source (TDS) applies to air freight charges included in a supplier's bill for imports. A user queries about the TDS liability when the commercial invoice includes freight charges not present in the proforma invoice. A respondent clarifies that since the freight is reimbursed to the supplier, no TDS applies. Another user appreciates the explanation, noting its clarity and educational value. A separate query is raised about TDS liability on air freight fees from a business associate, questioning if reimbursement to the associate, who paid the airline, incurs TDS.