TDS IN GOODS PURCHASE BILL

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This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194Q applies to freight charges when goods are purchased. The consensus is that TDS should only be deducted on the value of the goods themselves, excluding any separate freight charges. This is because freight is typically treated as an expense rather than part of the goods' cost for TDS purposes.

satyanarayanaraju

satyanarayanaraju (Querist)
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07 January 2022 As goods purchased from supplier on that tds under 194q applicable but freight is disclosed in invoice as per accounting freight is included in cost goods but freight disclosed seperately then tds under 194q to be deducted on total of value including freight ????

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 January 2022 No. Only over goods value, excluding freight.

satyanarayanaraju

satyanarayanaraju (Querist)
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07 January 2022 Can you explain me sir why as it is included in cost of goods why not to do tds

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 January 2022 As such freight is excluded from the the cost of goods, as it is treated as expense.
While the TDS is to be deducted only on the cost of goods.

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