TaxTMI 
TaxTMI 
Deduction of TDS on overseas payments against freight debit notes
X X X X Extracts X X X X
X X X X Extracts X X X X
....eduction of TDS on overseas payments against freight debit notes<br> Query (Issue) Started By: - ABF GROUP OF COMPANIES INDIA Dated:- 27-6-2011 Last Reply Date:- 26-7-2011 Income Tax<br>Got 2 Replies<br>Income Tax<br>Hi. As a Freight forwarder, we use to get Debit Notes from Freight forwarders around the world who are our network agents. These debitnotes are in foreign currency mostly in USD and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sometimes in Euro & GBP. These are for the Freight charges paid by the Agents on our behalf and some handling charges for the services provided by the agents for us. My question is: Are the remmittances made to these agents around the world for the debit-notes raised by them ( some times Credit note given by us) is subject to deduction of TDS. If yes then under what section and what is the rate....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of deduction. Is there any judgement on opinion given by expert panel on this subject. please advice. Reply By Bakul Gandhi: The Reply: If the services are rendered outside India, and the network agents are all independent, their charges will not be taxable in India and therefore no need of withholding tax u/s 195. The banker-authorised delaer will remit foreign currency on your behalf only i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f your application is with a certificate from CA that the payment is not liable to any withholding tax. Reply By KURIACHAN PAULOSE: The Reply: If the freight charges are on account of goods shipped at any port in India it is hit by Section 44B . However, benefit under respective country's DTAA can be availed. CA.Kuriachan V P, Chennai<br> Discussion Forum - Knowledge Sharing ....