We paid to our foreign supplier in advance through proforma invoices 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? If there what is the rate of TDS?
No TDS on Freight Part of Customs Value; TDS Required for INR Payments to Freight Forwarders Under CFR Terms. A user inquired about the tax implications of paying freight charges separately to a foreign supplier after initially paying via proforma invoices that excluded freight. It was clarified that no Tax Deducted at Source (TDS) is applicable on the freight if it forms part of the assessable value for customs duty. However, if the freight is paid to a freight forwarder in INR, TDS must be deducted. The user was advised to use Form A1 for processing the payment since the freight is separately listed in the invoice, indicating CFR INCOTERMS. The discussion concluded with encouragement to study taxation and GST for career enhancement. (AI Summary)
TaxTMI 
TaxTMI 
