Freight payment against Import, Income Tax

[Asish Kumar Nath]

 We paid to our foreign supplier in advance through proforma invoices which was excluding freight. Now they raised commercial invoice where freight charges in included and Bill of entry also bears the same value as on commercial invoice. So, there is an difference between proforma invoice and commercial invoice ( the freight amount ).

Now we have to pay the freight only to our foreign customer. Is there any TDS liability persists? If there what is the rate of TDS?

Posts / Replies

[pradeep khatri]

There would not be any TDS applicable on the freight since it has become the part of assessable value for calculating the customs duty. If you pay this freight amount to freight forwarder in INR then you are liable to deduct the TDS otherwise not.

[Asish Kumar Nath]

Bank  asked us to process thge payment in  FORM A2 only.Since it is the part of import, shall I process FORM A1 for this payment?

[pradeep khatri]

You would have to fill the information in Form A1 Since the freight shown separately in the invoice raised by your foreign supplier, it means the INCOTERMS were CFRs.  Kindly discuss this aspect with your Authorised Dealer (i.e. your Banker).

[Asish Kumar Nath]

THANKS.

[pradeep khatri]

Welcome!

Further, do lots of studies in the field of Taxation and GST.  It will enrich your knowledge and enhanance your career.  Last but not least, Knowledge is power, when shared.

Regards,

Pradeep Khatri