Tds on freight

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2015 Dear Sir
We know that from 1st June'2015 Tds is liable to be deducted in case the Transporter owns more than 10 vehicles. Now in case of a Consignee, he pays full amount of Invoice (invoice is including Goods + Freight + Insurance) to the Supplier.
Now my question is :
1. TDS deduction liability is of Consignor or Consignee?
2. We know that Freight is an expense of Consignee so on that basis can the liability be shifted to consignee?
3. In case of Service Tax the liability is on payer, in above case the Consignor who is dealing Transporter directly. So can it be interpreted that Tds liability is also of Consignor?
4. Can it be said that the Contract is between Transporter and Consignor. As the Consignor is dealing Transporter i.e. booking of Transporter, Terms & Conditions, Payments,etc. And the consignee is only aware about the Transporter at the time of Receiving the Goods. So the Tds liability should be imposed on Consignor only?
5. The Business standard is like Consignor deliverying the goods on FOB (Freight on Board or Door Delivery) basis. So also the liability is on Consignor. Whether any declaration should be taken?

Please reply on the above issue?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 October 2015 1 It is on who is making the payment.
2 No it can't be shifted.
3 Yes it is on consignor.
4 Yes it is on consignor only.
5 Liability is on consignor in case of non deduction declaration is to be taken.

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2015 Thank You for your Reply Sir. But I think for the safe side, if there is any clear notification or guideline from IT deptt about the liability is on Consignor. As my concern is still on the point that the Freight (expense) is being claimed by Consignee. And as we know Tds is deductable by the one who claims the amount as an Expense. Please provide any supporting if available.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 October 2015 If TDS has been deducted by consignor there is no need to deduct further TDS. Show the deduction document of consignor to tax auditor he will accept it.

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