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tds on freight payment to non resident shipping company

Do we have to deduct TDS from shipping lines? for Non-residents. On the other hand, section 172 operates in the area of computation of profits from shipping business of non-resi dents. || Arun Kumar Regarding your query the non deduction of TDS on sea freight paid it is submitted that as the freight paid to shipping agent of non-resident shipping companies, so TDS provision is not applicable. Usually, the maximum period of the Certificate will be one year only. Members || Thus, there is no … Home || … (They refuse so accept it because they say they are exempt from Income Tax in India) … . No TDS (Withholding Tax) on payment to Non-Residents. Privacy Policy || The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving … Tax Deducted at Source (TDS… While dealing with Section 194C of the Act, the High Court observed that the liability to deduct tax at source on the freight charges was that of the supplier while making payment … However, the AO directed the assessee company to deduct TDS on the amount of payments made to various non-resident agents/parties for freight. Any payment made to them would be liable for TDS. Tds need not be deducted on the following category of expenses: Ocean Freight… As per the provisiosn of section 172 of IT Act, any resident making payment to a non resident, on account of freight of goods and live stock from any Indian Port, need not deduct TDS from such payment if the freighter / owner of the ship ha made arrangement of payment of Indian taxes on such freight income … Ashwani Rastogi ... • To a non-resident or a Foreign Company o Payee - Non-residents & Foreign Co. (whether or not NR) ... 7 S0202 Payment for operating expenses of Indian shipping companies … The High Court of Gujarat held that no Tax Deducted at Source (TDS) is applicable on export freight to shipping agents of the non-resident. On this, the Principal Commissioner of tax issued a challenging order u/s 263 of Income Tax Act 1961, on the basis which the assesses company has paid the export freight to the Inter Ocean Shipping and Logistic Services without deducting … “The clearing and forwarding agents act as independent contractors. On the other hand, section 172 operates in the area of computation of profits from shipping business of non … 2. Section 172 deals with shipping business of non-residents. (Archive), Pf & esi liability - deducting tds on contractor under 194c head? It is clear from the section that the area of operation of TDS is confined to payments made to any "resident". Name of the Principal (Foreign Shipping Liner) and Name of the Agent (Indian Agent of the Foreign Shipping Liner) should be verified for each transactions with the relevant BL Copies. © Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. While making any payment for service obtained from a non-resident shipping company, sec 194c will not be attracted. The Movers International is a shipping agent of swift connection which is a non-resident shipping company. Section 195 is applied for deducting TDS on non-resident, which covers all transactions/payments. TDS stands for tax deducted at source. Different sections comprise of different provisions for deducting taxes and based on the nature of the transaction and payment, various sections are applied like 194A, 194B, 194C etc. The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them … || The answer comes from following … Hie Niru, Under section 194C, if payment is made to shipping agents of non resident ship owners, since the agent acts on behalf of non resident ship owner or Charterer, there is no TDS attracted., otherwise if paid to a resident TDS is attracted on freight payment. ... (Appeals) noted that neither freight nor inspection charges were paid by assessee company for any services rendered in India nor … If the names of the Principal and Agent not mentioned in the Tax Exemption Certificate, Self Declaration Letter can be obtained from the Principal/Agent in the Letter Paper along with the Tax Exemption Certificate. ITAT Amritsar, in a recent judgment has held that shipping charges (Inland haulage charges, Terminal handling charges, Bunker adjustment factor, Cost adjustment factor, etc) using non-resident shipping are not liable to TDS u/s 172 … Contact us || Representations have been received regarding the scope of sections 172, 194C and 195 of the Income-tax Act, 1961, in connection with tax deduction at source from payments made to the foreign shipping companies or their agents. TDS ON FOREIGN REMITTANCES, ON PAYMENT TO NON-RESIDENT Surprises continued.. CA. The Tribunal considered the materials placed before it and found that the respondent assessee had made payment for export freight to the Indian Ocean Shipping and Logistics Services, which was an Indian Agent acting on behalf of the non-resident shipping company for collecting freight … The respondent-assessee, Summit India Water … Facts of the case Assessee filed its return of income for the assessment year 2013-14 declaring total loss of ₹35 crore (approx.). We ship our goods by sea and pay Ocean freight to shipping lines in INR. 1. … While section 172 is not related to TDS, the issue becomes simple if the TDS on freight payment to non resident shipping companies has to be made. Any company or person doing a financial transaction that is subject to TDS payment is required to deduct tax at source i.e while making the transaction. Feedback || This Certificate is valid only for the Period mentioned in the Certificate. It paid freight amounting to ₹ 2.03 crore (approx.) (Archive), How To Prepare Salary Breakup At Various Levels - XLS Download, Need Esic Notification 15000 To 21000 - PDF Download, TDS Employer and Employee - advantages and disadvantages discussion, How To Download Form 16 Part A From TDSCPC Website, Hiring of Employee in regular employment with fixed term - person is above 60 years old, Contract Labour list Of Document Required - XLS Download, Proprietorship Firm To Partnership Firm - DOC Download. 195 relating to tax deduction at source will not apply to the payments made to non-resident shipping companies only if their income is assessed u/s 172 of the Act. Documents required for non-deduction of TDS for the above expenses: The above stated provisions will not applicable to any Indian shipping Liner. Save money on TDS: If the operator of the carrier ocean liner with your freight is a non-resident of India, you will not be required to pay the TDS tax to the Income Tax Department of India. About us || Terms of Use || Will my new employer know that my credentials are already registered in the P.F. Sec 195 says, must deduct TDS while making payment to non-resident … If you want to continue this discussion or have a follow up question, Other Similar User Discussions On Cite.Co, Related Files & Downloads Shared By Members, Is payment of wages act, 1936 applicable to it companies (Archive), Legality of bonds filled in software companies - can one break employment bonds? • The assessee has to show that the shipping companies to whom payments were made are not only non-residents … It is clear from the section that the area of operation of TDS is confined to payments made to any “resident”. Site Map - Recent || Tax exemption Certificate issued by the Income tax Department. Name of the Principal (Foreign Shipping Liner) and Name of the Agent (Indian Agent of the Foreign Shipping Liner) should be mentioned in the Tax exemption Certificate. Disclaimer || to Inter Ocean Shipping … Database || TDS Deduction from payments made to Non-Resident foreign shipping Companies: If the Payments are made to an agent of a Foreign(Non-Resident) Shipping Liner. Act, 1961 (the Act) on freight charges reimbursed to the supplier. It is clear from the section that the area of operation of TDS is confined to payments made to any “resident”. In Form 15CB, a Chartered Accountant certifies details and nature of the payment being made to the non-resident, rate of TDS and deduction of income-tax as per Section 195 of the Income … Ltd.] All rights reserved. So we need to collect every year from the Party. This guide will cover section 195 … Site Map || Hra Rental Reciept To Get Exemption - PDF Download, Am I Eligible For Tax Deduction On Medical Bill. On the other hand, section 172 operates in the area of computation of profits from shipping business of non-residents. TDS Deduction from payments made to Non-Resident foreign shipping Companies: If the Payments are made to an agent of a Foreign(Non-Resident) Shipping Liner. Circulars & Clarifications on Income Declaration Scheme, Abatement, Composition, Specified Valuation, Tariff / Basic Rate of Duty / Classification, Import Tariff / Basic Rate of Duty / Classification, CST (Registration And Turnover) Rules, 1957, Income Computation & Disclosure Standard (ICDS), Indian Accounting Standards (Ind AS) - 2015, Provisions of Companies Act, 1956 applicable to LLP, Limited Liability Partnership Rules, 2009, LLP (Winding up and Dissolution) Rules, 2012, Income computation & disclosure standards. The Tribunal considered the materials placed before it and found that the respondent assessee had made payment for export freight to the Indian Ocean Shipping and Logistics Services, which was an Indian Agent acting on behalf of the non-­resident shipping company for collecting freight … ||, Any other amount of Similar Nature (Like Addl.Ocean Freight/Addl.Demurrage/Addl.THC etc ). PF - Is form 15h mandate for PF withdrawal. Refer Us || Tds need not be deducted on the following category of expenses: Any other expenses not mentioned above, will be subject to deduction of TDS. This discussion thread is closed. database because of the new UAN system? It provided that income of a non-resident assessee engaged in the business of operation of ships, 7.5% of the gross freight will be deemed to be profits and gains chargeable to tax under the head “Profits and … TDS rates for AY 2021-22 for Payment of Salary and Wages to Resident and Non-resident Individual payees; Payments other than Salary and Wages to Resident Individual, Resident HUF, Resident Firm / Co-operative, Domestic Company, Non-resident (Other than Foreign Company) and Foreign Company … They would also be liable to deduct tax at source while making … 2.03 crore ( approx. to non-residents is closed swift connection which is a non-resident shipping.! Not applicable to any “ resident ” business of non-resi dents liable deduct! For TDS continued.. CA payment to non-residents contractor under 194c head ₹ 2.03 crore (.... Them would be liable for TDS, there is no … no TDS Withholding! 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