TDS on demurrage paid to Supplier of Goods

[Shyam Naik]

Dear All,

We have imported coal from a foreign supplier. The discharging of cargo took more time than originally agreed and accordingly, we are required to compensate the supplier, ie. we need to pay demurrage.

The query is, whether the payment of demurrage would attract TDS. Would be grateful, if some judgment can be quoted.

Thank You.

Warm regards,

Shyam

[Malay pota]

Dear Mr. Shyam Naik

Import Demurrage is subject to TDS.

Malay Pota

[Malay pota]

Dear Shyam

Please do not consider my above reply as i have written through oversight.i am giving you fresh reply very soon.Sorry for the inconvenience .

Thanks Malay

[Malay pota]

Dear Mr.Shyam Naik,

As per my view there is no provision in the Income Tax of India for charging TDS on any payment to wards Import including DEMURRAGE.

[YAGAY and SUN]

http://abcaus.in/income-tax/shipping-charges-not-liable-to-tds-us-1728-cbdt-circular-723.html

[Shyam Naik]

Dear Malay,

Thank you very much.

Shyam

AI Summary

TDS on demurrage: contributors conclude payments to foreign suppliers for import demurrage are not subject to TDS under current provisions.
The question is whether TDS applies to demurrage paid to a foreign supplier for delayed discharge of imported goods. The discussion records conflicting responses: an initial assertion that import demurrage attracts TDS was retracted, and a subsequent view asserts there is no provision to charge TDS on payments toward imports including demurrage; a linked commentary suggests shipping charges are not liable to TDS.