Freight payment against Import

[Asish Kumar Nath]

 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?

AI Summary

Assessable value inclusion: freight in supplier invoice is not separately subject to TDS unless paid domestically.
Freight included later in the supplier's commercial invoice constitutes part of the assessable value for customs and is not separately liable to TDS when paid to the foreign supplier; TDS arises only if the importer pays freight in INR to a domestic freight forwarder. If freight is shown separately (suggesting CFR terms), consult the authorised dealer on using Form A1 for the remittance and on bank declaration requirements to ensure correct forex and TDS treatment.