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Discussion > Income Tax >

Tds on Freight charged by supplier

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ACA, B.COM

[ Scorecard : 7812]
Posted On 14 November 2007 at 14:43 Report Abuse

Dear Friends,

Our  company is manufacturing company. We are purchasing material from different supplier , We are facing problem regarding tds on freight which is charged by supplier on invoice bill . There is two case

Case 1 – Supplier is charging freight from us on behalf of transporter . He told that service tax liability is also is the purchaser i.e us. Now we are depositing service tax on freight. This freight is charged on Purchase bill as freight.

Now my question is TDS is to be deducted or not on that freight u/s 194 C . If yes , then We have to deducted tds of supplier or transporter. Because we are paying freight to supplier . Second question is Tds is to deducted on freight amount only or any other amount i.e bill amount.

 

Case 2 – Supplier is charging freight from us and service tax is paid by supplier. Freight & service tax both is shown on purchase bill. Now in this case we have to deduct tds on freight amount or total bill amount.

Please help asap.


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Late CA Sampat Jain
Chartered Accountant

[ Scorecard : 4717]
Posted On 14 November 2007 at 16:32

CONDITIONS FOR APPLICABILITY OF SECTION 194C 1. Any person responsible for paying any sum to any resident (hereinafter in this section referred to as the contractor) 2.for carrying out any work (including supply of labour for carrying out any work) 3.. in pursuance of a contract between the contractor and ......... Now , on the facts of your case , determine who is responsible for paying to the contractor , because ultimately it is TDS from contractor .......... The relevant facts for determiing this may be 1. Agreement with transporter is with whom 2. whether transporter is known to the company 3. who is responsible to pay to the transporter etc




Vijay K. Agrawal
Service

[ Scorecard : 608]
Posted On 14 November 2007 at 17:32

Dear Bansal, Case-1 Pl deduct TDS on Freght amount charged on bill. tds certificate in the name of supplier becuase in substance you are paying to suppliers. you may ask your supplier to furnish separate Dr note for freight. Ded. TDS only on freight amount only. CASE-2 in this case you will be required to deduct TDS on Freight amount including service tax.



CA. O.P. Agarwalla
C.A.

[ Scorecard : 2556]
Posted On 16 November 2007 at 16:51

Mr. Vijay, I would like to rearrange the question as follows:- 01. My supplier has issued me debit note for freight paid by him to the transporter and accordingly I paid / reimbursed the sum to him. I have not entered into any work contract with transporter, neither I am the person responsible for paying the sum of contract to the transporter. I am just paying the sum to the supplier as part of my sale & purchase agreement. Whether in mine case section 194C will be applicable? In other words, if I deduct TDS u/s. 194C(1) from the supplier, whether supplier will also deduct TDS from Contractor agt. the same Contract? I will also solicite the reply of Ld. Sampat Jain. Thanks



(Guest)
Posted On 19 June 2008 at 21:46

 

 




(Guest)
Posted On 19 June 2008 at 21:49

give me detail about service tax and tds




Vijay K. Agrawal
Service

[ Scorecard : 608]
Posted On 20 June 2008 at 09:17

Dear Bansal,

I think you ask your supplier to raise separate Dr. note for Freight amount. other wise ell him that we will deduct TDS on all maount.

In alternate if you do noty have option, then deduct TDS only in Freight maount only. it can be proved to IT Authority. this is the last option.

Regards

Vijay Agrawal

 




(Guest)
Posted On 21 August 2008 at 18:06

how much tds rate on frieght




CA. BIJENDER KR. BANSAL
ACA, B.COM

[ Scorecard : 7812]
Posted On 22 August 2008 at 10:18

Originally posted by :Guest
" how much tds rate on frieght "


 

2.266% or 2.06%




(Guest)
Posted On 01 September 2008 at 16:41

Supplier is charging freight from us on behalf of transporter . He is making debit note, although he has not service tax registration.He told that service tax liability is also is the purchaser i.e us. Now we are depositing service tax on freight. This freight is charged on Purchase bill as freight.

now my question is whether Service tax payable or not

 

 



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