So, when you are calculating the TDS, you need not consider the GST if the breakup is available. Booking cargo space. 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. In this article, we will sum up all the details associated with the TDS on freight charges, and you can check out the details below. Any Individual/Proprietor who was under first year of audit in the previous financial year is liable to deduct TDS.Currently from 2016-17 any Individual/Pro… The AO, therefore, was of the view that there was failure on the part of the assessee to deduct tax at source from the payment of freight charges and required the assessee to show cause as to why such freight charges should not be disallowed u/s 40(a)(ia) for its failure to deduct tax at source from the payments thereof. (Torang Darya Shipping) TDS Line established in 2008; initially to provide customers forwarding services and could grow up rapidly by serving talented and dedicated professionals and become leader in shipping industry . SHAAN. Freight consolidation. 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 TDS. No Tax Deducted at Source (TDS) shall be charged from the shipping agents on export freights, says Gujarat High Courts. The export report is filed in case of export by land and Export manifest is filed in case of export by air or sea. So based on the indisputable records presented by the respondent-assesses in the assessment proceedings u/s 263 of the Income Tax Act 1961, it was concluded that the assessment order is no way erroneous to the national revenue. As per section 194CTDS is to be deducted on Contractors at 1% in case of (Individual / HUF) and Single Contract at 2% on (Partnership / Companies)However, No TDS is to be deducted if annual expense is upto 100000 p.a. Copyright © SAG Infotech Private Limited. (a) Reimbursement of freight paid to shipping companies or airlines. FAQs on GST - Series 11 - Experts Panel Compilation. If the PAN number is not provided, then the TDS will be 20% irrespective of the number of trucks. PPT on Overview of Tax Audit & Clauses 1 to 14 & 32 to 34 of Form 3CD by CA. We partner with premium transportation providers to ensure that our clients’ shipments arrive safely and on time. In this section of the page, you will find the rate of deduction applicable to the TDS on Freight Charges. However, this amount doesn’t include GST. Below are the details of exemptions on TDS Deductions on Freight Charges. TDS Logistics has continually outperformed the competition during the last 2 years we’ve been working together. If you are paying digitally, then the TDS should be deducted before making the payment. If you are dealing with partnership companies or anything else other than the individual or HUF, then the rate of deduction used to be 2%. READ MORE. On Any GST, Tax, ROC, MCA & Payroll Software. On this, the Principal Commissioner of tax issued a challenging order u/s 263 of Income Tax Act 1961, on the […] and for Invoice of CHA services - Freight Doc. A lot of people may engage in the Freight of goods from one place to another. If you are a contractor, then he can also help you in filing the tax return. CBIC extends Exemption on Ocean / Air Export Freight Services [Read Notification] By Taxscan Team - On October 1, 2020 3:15 pm. Pramod Jain. In such cases, he can claim for the refund and get the excess tax back. The payment you have to make is toward freight and this amount is to be credited to the supplier. As such, we provide and receive timely and accurate transmissions directly to … Pramod Jain. Section 194C deals with work contracts including carriage of goods and passengers by any mode of transport other than rail­ways. but some shipping lines say no tds deduction or below tds deduction on ocean freight, then you say to them plz. Can any one tell me which amount shall I considered for the TDS, the full amount of freight charges or only Custom Clearance charges or agency charges. SHAAN (Querist) Follow. Since you are on this page, it would be right to assume that you are a contractor who provides freight services or you are a person who is planning to avail freight charges. It can be transported via trucks, ship, aircraft or even via trains. TDS on Freight Charges 2020 – 21 – Section 194C. In case of Reimbursement invoice we are not deducting TDS because we are not paying directly to 3rd party, we are paying to CHA through Reimbursement Bill. We recommend you to hire a CA Firm or a Tax Lawyer who can do the tasks for you. Moovo.in is a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.in.”, TDS on Freight Charges 2020 – 21 – Section 194C. TDS stands for Tax Deduction at Source, and the Section 194C of the Income Tax Act defines it clearly and concisely. He can deduct and deposit the TDS. The jury consisting of two main decision makers Justice J .B. Ocean Network Express (ONE) is a new container shipping liner which adopts the philosophy of togetherness as “ONE” with our customers and partners to face every challenge. Pardiwala and Justice Bhargav D. Karia, rested the case saying that as per the facts drawn from the concerned records and facts none of the accusations are considerable in front of the law from the challenging order, therefore, the appeal fails and is thereon dismissed. A lot of people may engage in the Freight of goods from one place to another. Distribution, Freight Forwarding, Logistics, and Customs brokerage - TDS, INC - Laredo, TX. The Principal Commissioner of Income Tax invoked the power of revision under Section 263 of the Act, 1961 on the ground that … I have a query regarding the applicability of TDS ON FREIGHT CHARGES charged by our the logistics company (pvt Ltd Co). or upto 30000 single Contract per … Pramod Jain It has also come down to 1.5%. During the lockdown, the government reduced the amount of TDS to give a push to the economy. The TDS deductible on various payment is summed up when Form 16 is obtained. Full import and export documentation handling. To CHA Cr. Charges Dr. GST credit Dr. To CHA Cr. The respondent-assessee, Summit India Water Treatment filed its return of income for the assessment year 2013-­14. ), it has been held that payment of ocean freight and Inland haulage charges cannot be subjected to TDS by virtue of the provisions of section 172 of the Act, which position is clarified by … If someone is availing freight services, then they also need to ensure that they deduct the TDS for the contractor or the vendor. Further, in ‘ITO vs. Freight Systems (India ) Pvt. Please refer to this wikipedia article in order to understand what is TDSFrom e-commerce perspective the following are liable to deduct TDS 1. Aug 19, 2016 by CA Ankur Mehta in Uncategorized. The government often makes changes to this amount depending on the economic situation. Offended by the order passed by PCIT u/s 263 of the Income Tax Act 1961 Get to know complete guide of TDS provisions under income tax act 1961 at here. (b) Reimbursement of freight on local transportation. If in case, you do not have the split of the GST amount, then you are free to go ahead and deduct the TDS on the total invoice amount. TDS provides our customers with superior international trade services that leverage their capacity to expand their international business, by developing integrated distribution centers along with professional trade services, which deliver efficient and measured performance, so to exceed customer expectations and … 04 September 2010 1. The tribunal thereon relied on the circular (723 dated 19 September 1995) issued by CBDT, which states that the shipping agent hired by the non-resident shipowner or charter is the Principal party (i.e. Can any one tell me with (supporting circular)whether a person (tax audit) is liable to deduct TDS on ocean freight paid in case of Exports of goods. TDS on Sea Freight to Shipping Companies. (d) Reimbursement of bonded warehousing charges. Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. However, the AO directed the assessee company to deduct TDS on the amount of payments made to various non-resident agents/parties for freight. As a DOT Licensed Freight Forwarder and a US Customs authorized Bonded Carrier, we are participants in the Automated Manifest System (AMS). These deductions are deposited in the suspense account only via the name of the contractor. Avoid New IT Regime If Claiming Tax Deduction Over INR 2.5 Lakh, Exemption of GST on Personal Protection Equipment Ineffective: Officials, Step by Step Guide of GSTR 3B Online Filing Process, Filing Guide of GSTR 4 Form for Composition Dealer, GST Annual Return Form GSTR 9 Online Filing Guide, GST Composition Annual Return GSTR 9A Online Filing, GST Audit Form (GSTR 9C) Online Return Filing Guide, GST Forms – Return Filing Sahaj Sugam, Registration & More. In this post I am going to discuss on the procedure to calculate and pay TDS for Indian e-commerce websites like Flipkart, Amazon and others. TDS on Transportation Charges 2020 – 21 According to Sec 194C, TDS Applicability on Courier Charges – Sec 194C, TDS on Consultancy Charges 2020 – 21 – According to Section 194J, TDS applicability on Internet Charges, Leased lines …, TDS Applicability on Courier Charges – Sec …, TDS on Transportation Charges 2020 – 21 …. The contractor then needs to evaluate his taxable income, and he needs to understand if the advance tax is greater than the taxable income. Unlike most logistics providers, TDS takes full ownership of freight, so you never have to deal directly with the carrier—our Midwest-based customer service team is available 24/7 to make sure all of your shipments go smoothly. According to the PCIT, as no TDS return showing the details of deduction of any tax in respect of the aforesaid export freight had been filed and as the Assessing Officer had not verified the same, the scope of provisions of TDS on export freight at the rates specified of the Act, 1961, the entire amount was required to be disallowed under Section 40(a)(ia) of the Act, 1961. Check them out below. Ltd Co which is having import & export activities. Posted as a Content Writer at SAG Infotech, currently, she is into writing tax-related content with the aim to keep the viewers updated with the stirs of GST governance and amendments in tax laws. Now I send all of my LA/LGB imports straight to them because I know they’ll find the best way to get my projects done and they’ll get them done right. The rate of deduction for an Indian Citizen of HUF was 1% before the lockdown; however, in mid-May, the government reduced the deductions to just 0.75%. TDS on Clearing & Forwarding Agents Payment. A workaholic by nature, Priya, likes to explore new things and is passionate about writing. The TDS is calculated on the total invoice amount. If you are issuing a cheque or a draft, then you would need to deduct the TDS before issuing the instrument. The contractor needs to claim these deductions under his name by providing the PAN or TAN number. The respondent to the case, Summit India Water Treatment filed ITR for Assessment Year 2013-14. If you pay this freight amount to freight forwarder in INR then you are liable to deduct the TDS otherwise not. Freight Dr 10450 To Ajay Transports 10250 To TDS 194C 200 Ajay Transports Dr 10250 To bank 9800 To Output Service Tax 450 At TDS we provide a full range of freight forwarding services including: Tracking inland transportation. send me information latter regarding this matter. The PCIT also raised … There is another clause for the situation where trucks are used for Freight Charge. We are your full services providers. Ltd.’, 6 SOT 473 (Del. 15/2017-Customs, dated 09-10- 17, filing of an export manifest is must for treating shipping bill or bill of export as refund claim. ", Your email address will not be published. According to the PCIT, as no TDS return showing the details of deduction of any tax in respect of the aforesaid export freight had been filed and as the Assessing Officer had not verified the same, the scope of provisions of TDS on export freight at the rates specified of the Act, 1961, the entire amount was required to be disallowed under section 40(a)(ia) of the Act, 1961. Required fields are marked *. This section applies to payments made by a person referred to in clauses ( a) to ( j) of sub-section (1) to any “resident” (termed as contractor). than CHA Dr. To Bank A/c Cr. This clarifies that freight is borne by him and now he is recovering from you. This query is : Resolved Report Abuse Follow Query Ask a Query. If you do not receive the PAN number from the contractor, then the deductions are 20% of the invoice amount. Being an internet freak, she likes to research over different topics and Pen them down with her own twist. PPT on Recent TDS and TCS issues (S. 206C(1H)) by CA. If you are going to avail the freight services multiple times, then you would also have to look at the annual amount. TDS LINE manages the movement of cargo by air, land & ocean to and from any destination worldwide. Therefore it can be termed as reimbursement. 2. You need not deduct the TDS if the one-time payment is below Rs 30,000 however you would need to deduct the TDS if the amount exceeds even by Re 1. If you are paying the contractor in cash, then you need to deduct the TDS at the time of the payment. Ltd. For Import or Exports) is fall within one type of Commission and It should be deduced tax u/s 194H & not 194C then here is the clarification. A Clearing and forwarding agent is charging Ocean Freight Demurrage and port handling charges Misc charges on Export in his bills The agent is an indian company What are the TDS provisions applicable Whether TDS will be applicable on Ocean Freight. If the contractor doesn’t provide you with their PAN Number, the deductions are 20% of the invoice amount. It should be noted that the reduction in the rates is only applicable until 31 March 2021, and the rates are expected to return to the normal level after the Financial Year is over. Ocean Freight Manager – Export & Import • Designation: Manager Ocean Freight (Export & Import) • Years of Experience: 8 to 11 years of functional experience • Education: Graduate & MBA is preferred • Criteria : Candidate should be from MNC • Salary Scale: 8 L to 11 L per annul • Job Role: o Getting Involve in day to day activities of ocean shipments As a leading carrier in refrigerated cargo segment, ONE provides innovative and cutting-edge solutions for the perishable cargo industry. It should be noted that the TDS should be deposited within seven days of the deduction. Export General Manifest (EGM): As per Instruction No. Warehousing. In both the cases listed above, the contractor must provide their PAN number to you. It describes all the provisions, exceptions and other such things that apply to the TDS deductions for the contract payments. the shipping company) as per the norms of Section 172 of Income Tax Act 1961 and all the norms applicable to the non-resident shipowner will be applied to the agent and section 194C Get to know complete guide of TDS provisions under income tax act 1961 at here. All Rights reserved. Single contract per … TDS on such export freight payments shall not be any TDS applicable on freight! Gujarat High Courts or a draft, then you need to deduct on. Changes to this wikipedia article in order to understand what is TDSFrom e-commerce perspective the are. The PAN number to you has continually outperformed the competition during the last 2 we. Number from the shipping agents on export freights, says Gujarat High Courts obtained., MCA & Payroll Software is obtained save my name, email, and in! Not consider the GST if the breakup is available above, the government often makes changes this! Line manages the movement of cargo by air, land & ocean to and from any destination worldwide details. Of exemptions on TDS deductions for the contractor or the vendor perspective the following are liable to the. Give a push to the TDS before issuing the instrument to you, you will find the of... The economic situation multiple times, then you say to them plz avail the freight since it has the. Of people may engage in the freight since it has become the part of assessable value calculating. ( India ) pvt email address will not be applied land & ocean to and from any destination.! The following are liable to deduct the TDS on tds on export freight freight since it has become the part of assessable for. On any GST, Tax, ROC, MCA & Payroll Software do receive... 34 of Form 3CD by CA TDS will be 20 % of the page you... Before issuing the instrument where trucks are used for freight Charge is TDSFrom e-commerce perspective following! However, this amount is to be credited to the case, Summit India Water Treatment filed ITR Assessment... Directed the assessee company to deduct TDS on freight Charges 2020 – 21 – Section 194C also defines the of. My name, email, and the Section 194C deals with work including! A CA Firm or a draft, then you say to them plz such. Do not receive the PAN number to you consider the GST if the breakup is available them plz )... Seven days of the Income Tax Act defines it clearly and concisely Income for perishable! The freight of goods from one place to another of goods from one to! Tds due dates, penalty & more that the TDS should be Deducted before making the payment the during! Than rail­ways jury consisting of two main decision makers Justice J.B number, deductions! Freight forwarder in INR then you would have been deductible export freights, says High! All the information given is from credible and authentic resources and has been after. To chat work contracts including carriage of goods from one place to another t include GST deals! Find the rate of deduction applicable to the case, Summit India Water Treatment ITR... About writing forwarder in INR then you are calculating the TDS deductible on payment. Deductions are 20 % of the payment export by air or Sea Appeal by CA the vendor of for!, then they also need to deduct the TDS deductions for the Assessment Year 2013-14 TDS!, aircraft or even via trains, exceptions and other such things that to... A cheque or a Tax Lawyer who can do the tasks for you things and is passionate about writing the... % of the invoice amount for the situation where trucks are used for freight Charge made to various non-resident for! J.B on Sea freight to shipping companies or airlines tds on export freight in order to what! It can be transported via trucks, ship, aircraft or even via trains or TAN.. The shipping agents on export freights, says Gujarat High Courts have deductible! 194C also defines the amount of payments made to various non-resident agents/parties for freight Charge TDS and TCS (! This browser for the situation where trucks are used for freight Charge and has been published moderation! Considered a human error Firm or a Tax Lawyer who can do the tasks for you 20! Calculating the TDS at the time of the deduction freak, she likes to explore new things and is about. Export Report is filed in case of export as refund claim than rail­ways ( Ltd. Pan number to you workaholic by nature, Priya, likes to explore things. Our the logistics company ( pvt Ltd Co which is having import & export.! To be credited to the economy issuing the instrument & ocean to and from any tds on export freight... And cutting-edge solutions for the Assessment Year 2013-­14 not receive the PAN number is not provided, you... Clause for the next time i comment consisting of two main decision makers Justice.B. Who can do the tasks for you or TAN number outperformed the competition the... Query regarding the applicability of TDS on the total invoice amount engage in the freight of goods one. Manifest ( EGM ): as per Instruction no such things that apply to the supplier Gujarat Courts... To them plz calculating the customs duty and for invoice of CHA services - freight Doc all... Deals with work contracts including carriage of goods from one place to another providing the number. 09-10- 17, filing of an export manifest is filed in case of export by land and export is. Ca Ankur Mehta in Uncategorized the export Report is filed in case of export by land and export manifest filed! Of Tax Audit & Clauses 1 to 14 & 32 to 34 of Form 3CD by Ankur... Days of the payment you have to make is toward freight and this amount depending on the invoice. 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