Q & A:TDS ON FREIGHT CHARGED BY SUPPLIER

[P.D.RUNGTA]

Query:TDS ON FREIGHT CHARGED BY SUPPLIER
Dear All,
 one of my client has received material from a supplier.

 In the bill for the material, the supplier has charged freight also for the
 supply of the goods.

 My query is that

 1. Is TDS provision applicable in this case?

 2. If TDS provision is applicable, what is the base amount on which tax is to be deducted?

Rgds,
Mukesh Bothra

REPLY:1

Dear Mukeshji
The contract of carriage of goods is between the supplier and the transporter. The client is only reimbursing the freight charges to the supplier. There is no contract between client and the transporter. Tax might have been deducted by supplier while making payment to the transporter thus TDS provision is not applicable for the client..
Paras Kochar,AdvocateKolkataPh-40048593,22374749www.incometaxparaskochar.com

REPLY:1

Dear all,

So far as my concern,now TDS provsion is not applicable on frieght if pan
number of transporter is mentioned in the bill.

Thanks & Regards
Deepak Agarwal

REPLY:1

Dear Mukesh,

If the Supplier has provided the Consignment Note of Transporter and claiming reimbursement of freight in its Material Supply Bill as per the terms and conditions of P.O., then TDS should not be deducted on Transportation Charges provided PAN of Transporter is provided. Otherwise TDS will be deducted.


Transporatiobn Charges Dr.
To Transporter A/c

Transporter A/c Dr.
To Supplier A/c

Thanks

OPGupta
9051111697


Best Regards,
Pramod Dayal Rungta
M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)

P.D.Rungta & Co.
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[Kalidas Ramaswami]

In my view on the value of supplies there will be no TDS.If the freight payment includes payment for loading and unloading TDS could lie in Section 194C.
regards
kalidas
 

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Date: Sat, 9 Apr 2011 13:25:26 +0530
Subject: [PDRUNGTA] Q & A:TDS ON FREIGHT CHARGED BY SUPPLIER
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