TDS on transport payment
This query is : Resolved
Varsha Jain
(Querist)
23 January 2008
DEAR ALL,
Mr.A purchase goods from Mr.B.Mr.B makes transport payment to transporter.WHAT ABOUT TDS LIABILITY on Mr.A who reimburses the amount to Mr.B. Mr.A will claim this frieght as an expenditure in his P&L A/c.(will Frieght be disallowed on a/c of non deduction of TDS) Will it make any difference if the frieght amount is inclusive in the bill.
Mr.A purchase goods from Mr.B.Mr.B makes transport payment to transporter.WHAT ABOUT TDS LIABILITY on Mr.A who reimburses the amount to Mr.B. Mr.A will claim this frieght as an expenditure in his P&L A/c.(will Frieght be disallowed on a/c of non deduction of TDS) Will it make any difference if the frieght amount is inclusive in the bill.
S.Srinivasaraghavan
(Expert)
23 January 2008
If B recovers exact amount of transport cost from A, enclosing the copy of the bill raised by the transporter, and if B has paid the same amount to the transporter deducting tax at source, no liability to A to deduct tax on the transport charges.
If the freight amount is inclusive of Bill, then the goods are sold by B at C & F basis to A and the question of TDS does not arise.
If the freight amount is inclusive of Bill, then the goods are sold by B at C & F basis to A and the question of TDS does not arise.
23 January 2008
IF IT IS A COST INSURANCE FREIGHT CONTRACT(CIF) SALE, TDS IS NO ISSUE.
OTHERWISE THE PAYER OF ACTUAL FREIGHT TO TRANSPORTER HAS TO DEDUCT TDS.
R.V.RAO
OTHERWISE THE PAYER OF ACTUAL FREIGHT TO TRANSPORTER HAS TO DEDUCT TDS.
R.V.RAO
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