Tds on transporter and forwarder

This query is : Resolved

raina goyal (Querist)
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07 June 2014 Dear Sir

My company is a logistics service provider. From one vendor we receive Transportation bill and forwarding bill also. I receive 2 separate bills.
Do we have to deduct TDS on both bills or only on forwarding bill and not deduct TDS on transportation bill.

Kindly reply

Raina

Rupesh Jain

Rupesh Jain (Expert)
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07 June 2014 if you pay freight and transporter have PAN then no need to deduct the TDS on freight.
and on forwarding bill you have to deduct u/s 194C @1% or 2% as the vendor status individual/huf or firm/ company if you make payment exceed Rs. 30000/- single bill and Rs. 75000/- in a year.

raina goyal

raina goyal (Querist)
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07 June 2014 But is one person give 2 bills, so we do not have to pay on transportation but on forwarding bill? So in TDS retun how will I show one party two status?

Deepti Asawa

Deepti Asawa (Expert)
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07 June 2014 You should deduct TDS only on forwarding charges. TDS deduction depend on nature of payment or expenses not on party so that you can show 2 status of 1 party in TDS return.

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