Documents required for non-deduction of TDS for the above expenses: The above stated provisions will not applicable to any Indian shipping Liner. Tds need not be deducted on the following category of expenses: Any other expenses not mentioned above, will be subject to deduction of TDS. We ship our goods by sea and pay Ocean freight to shipping lines in INR. 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 mentioned in the Tax exemption Certificate. The Movers International is a shipping agent of swift connection which is a non-resident shipping company. 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 … Usually, the maximum period of the Certificate will be one year only. Tax exemption Certificate issued by the Income tax Department. 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. 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. 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… This Certificate is valid only for the Period mentioned in the Certificate. 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 … Tds need not be deducted on the following category of expenses: Ocean Freight… This guide will cover section 195 … Ltd.] All rights reserved. Sec 195 says, must deduct TDS while making payment to non-resident … to Inter Ocean Shipping … … They would also be liable to deduct tax at source while making … Site Map || Will my new employer know that my credentials are already registered in the P.F. It is clear from the section that the area of operation of TDS is confined to payments made to any “resident”. 2. … (They refuse so accept it because they say they are exempt from Income Tax in India) … 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 payment made to them would be liable for TDS. 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