Recently hon’ble Gujarat High Court in the landmark judgment in case of [2020] 113 taxmann.com 436 (Gujarat) M/s.Mohit Mineral Pvt. The assessee-company contended that it was not required to deduct TDS and cited a number of case laws to support the view and amounts paid to the agents were reimbursed to the assessee-company by the parties. ltd. (Indian co.) Ram Avtar Singh. TDS on Sea Freight to Shipping Companies. I had also gone through Sec 172 which states that there would be no TDS on ocean freight paid to a foreign shipping company orits agent. By the terms “Ocean Freight“, I am referring to transportation service of goods through vessel. 9. Some ocean freight will not require you to deduct the TDS tax from the shipping process. THE NEW CONTROVERSY:  In re Ganga Saran Vs. Commissioner of Sales Tax [1985 AIR 104], the Supreme Court has held that one of the canons of taxation is that the law shall specify the person who shall be liable to pay the tax. TDS on event management expenses - 194C or 194J - the payments were essentially for domestic ticketing, reimbursing hotel expenses, tour leaders’ expenses which were essentially in the nature of travel agent who had arranged the ticket booking and hotel facilities and not for any technical services availed by the assessee - TDS u/s 194C - No question of law arises The respondent to the case, Summit India Water Treatment filed ITR for Assessment Year 2013-14. Some department people are still asking to pay service tax on ocean freight under reverse charge mechanism during their audit without looking behind agreements/arrangements between export and importer. Ocean Freight Taxation – Post GST It’s taxation has been under numerous changes since Service Tax regime. TDS on courier charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents. Other major ocean shipping lines are –. Scenario 6, 8 covered under above entry hence service receiver needs to discharge RCM liability on ocean freight. 01. 1 of Notification 10/2017-Integrated Tax (Rate) ,dt. About 90 percent of everything we buy comes through ocean transport. 2) what is the percentage of GST. 2. Interest Saga- Gross Vs. 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