TDS DEDUCTION

[praveen kp]

We are a freight forwarding co in cochin.Some of our customers are deducting TDS from ocean freight.To avoid this deduction we are submitting the exemption certificate from shipping lines,but they were not accepting the same.if it is possible to get an exemption certificate for us from income tax. if possible what are the formalities we have to fullfil.Also let we know if there is any loophole to aviod this deduction. kindly advice

AI Summary

Freight Forwarder Seeks TDS Exemption on Ocean Freight; Chartered Accountant Advises Using Section 197 for Lower Deduction A freight forwarding company in Cochin is facing issues with customers deducting TDS from ocean freight payments. They have been submitting exemption certificates from shipping lines to avoid this deduction, but these are not being accepted. They seek advice on obtaining an exemption certificate from income tax authorities and inquire about any potential loopholes to avoid TDS deduction. A respondent, a Chartered Accountant, suggests that Section 197 allows for lower tax deduction if a Profit/Loss statement justifies no profit for the year. The respondent also expresses confusion about the 'exemption certificate from shipping lines.'