| Question And Answer | |
|---|---|
| Subject: | tds Regarding |
| Category: | Income-Tax |
| Querist: | Santosh |
| Answered by: | Law Intern |
| Tags: | TDS on Ocean Freight for Export |
| Date: | May 29, 2025 |
Is there applicable TDS on Export import on ocean freight or Not?
If the ocean freight payment is to a Non-Resident Shipping Company, no TDS is applicable on export and import of goods. See Section 172 of the Income Tax Act, 1961 and CBDT Circular No. 723 dated 19th September 1995.
If the payment is made to a resident shipping company or freight forwarder, TDS is applicable under Section 194C at the rate of 1% (for individuals/HUFs) or 2% (for other entities). An exemption applies under Section 194C(6) if the transporter owns 10 or fewer goods carriages and provides a valid PAN and declaration.
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