TDS on demurrage paid to Supplier of Goods, Income Tax

[Shyam Naik]

Dear All,

We have imported coal from a foreign supplier. The discharging of cargo took more time than originally agreed and accordingly, we are required to compensate the supplier, ie. we need to pay demurrage.

The query is, whether the payment of demurrage would attract TDS. Would be grateful, if some judgment can be quoted.

Thank You.

Warm regards,

Shyam

Posts / Replies

[malay pota]

Dear Mr. Shyam Naik

Import Demurrage is subject to TDS.

Malay Pota

[malay pota]

Dear Shyam

Please do not consider my above reply as i have written through oversight.i am giving you fresh reply very soon.Sorry for the inconvenience .

Thanks Malay

[malay pota]

Dear Mr.Shyam Naik,

As per my view there is no provision in the Income Tax of India for charging TDS on any payment to wards Import including DEMURRAGE.

[YAGAY AND SUN]

http://abcaus.in/income-tax/shipping-charges-not-liable-to-tds-us-1728-cbdt-circular-723.html

[Shyam Naik]

Dear Malay,

Thank you very much.

Shyam