TDS applicability

[Velayutham Panchatcharam]

We are a unit in SEZ and we are importing raw material. When import, NSDL is deducting INR200 per bill of entry. For which, we pay INR50,000 as deposit and NSDL deduct INR200 per BOE from deposit and again we pay fresh deposit. Now my question is whether INR50,000 or iNR200 is applicable for TDS. If yes, please provide in detail.

Regards/Panch

[DR.MARIAPPAN GOVINDARAJAN]

Whether you can inform under which provisions the deduction is made?

[Ganeshan Kalyani]

Buying goods is not service, do you must ask for the reason why TDS is being deducted. if you can let us know the provision under which they have deducted the tax we would be able to suggest whether it is applicbale or not .

AI Summary

TDS applicability on import-related charges questioned; obligation depends on statutory provision and nature of supply.
The unit reports NSDL debits a fixed charge from its import deposit per bill of entry; the question is whether those periodic deductions or the deposit constitute amounts subject to tax withheld at source. Respondents indicate the classification of the charge (payment for goods versus service or statutory fee) and identification of the statutory provision authorizing the deduction are determinative for withholding obligations.