Applicability of Tds

[Guest]

we are remitting amount to the parties of other countries.presently we have to remit amount from India to Singapore. the payment is of freight expenses incurred by the Singapore party on our behalf. the goods booked by our parties outside India and Singapore party made freight payment. Topay slips sent . we collect the amount from our party and on receipt of invoice from Singapore party send the amount to them. kindly advise us whether TDS provisions applicable or not .

AI Summary

TDS Applicability on Payments for International Freight: Analysis Under Section 195 of the Income Tax Act A party in India queried about the applicability of Tax Deducted at Source (TDS) on payments made to a Singaporean entity for freight expenses incurred on their behalf. The Singaporean party paid freight charges for goods booked outside India, and the Indian party remits the amount upon receiving an invoice. The response indicated that TDS may be applicable under Section 195 of the Income Tax Act if the income is taxable in India. It was advised to thoroughly analyze the situation before deciding on TDS deductions.