Tds deducted

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This query is : Resolved

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This discussion clarifies whether Tax Deducted at Source (TDS) needs to be applied to freight charges included in supplier invoices. The consensus is that TDS is generally applicable on these charges, even if the supplier arranges and pays the transporter directly. TDS is only exempt if the transportation cost is a genuine reimbursement and not part of the overall supply cost.

sona1

sona1 (Querist)

04 November 2020 We purchases material from suppliers. Transportation arranges by suppliers (Transportation cost including in invoice) and deliver goods to our factory address. Which details is given below:

Material Cost (Metal) Rs. 9,10,500.00
Add : Freight Charge Rs. 1,01,500.00
Add : IGST Rs. 1,82,160.00
Total : Rs. 11,94,160.00

our query is whether TDS should be deducted on above freight charges of Rs. 1,01,500.00

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 November 2020 Yes, TDS to be deducted on freight charges.

sona1

sona1 (Querist)

12 November 2020 but sir transportation is arranged by supplier and transportation cost also paid to DTDC by our supplier & we are paying to our supplier Rs. 1194160.00 not DTDC . we have no contract with the transporter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 November 2020 TDS not applicable only in case of actual reimbursement.

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