Tds deducted

Save Share

This query is : Resolved

Quick Summary

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)
Follow

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)
Follow

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

sona1

sona1 (Querist)
Follow

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)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!