Transporters - Freight being part of Puchase Bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2010 The assessee pay freight charges to the seller who show in the invoice freight charges for movement of goods.

Assessee dont know who the transporter is or doesnt recive any transporter. whether TDS liable on this? The bill is not PAN quoted as its mainly a purchase invoice.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 October 2010 No, TDS will not be applicable on transport charges paid through purchase invoice.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2010 The chrgs are not added to purchase cost...if shown separately as Inward frt. den tds? Situation here is transporter is unknown the seller gets the frt charges reimbursed thru the bill raised.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 Here’s the clarification on your situation:

* **If freight charges are included in the purchase invoice raised by the seller**, and you do **not know the actual transporter** (because seller paid them and is just passing on the cost), then **no TDS is applicable** on the freight amount.

* This is because **TDS on transport services is applicable only when payment is made directly to the transporter or service provider**, and you have their PAN details.

* Here, since you are paying the seller (who reimburses freight), and the transporter is not known or directly paid by you, TDS on freight is **not required**.

* Also, if freight is shown **separately** on the purchase invoice but not paid to transporter directly by you, still no TDS on freight.

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**Summary:**

| Scenario | TDS on Freight Payable? |
| ---------------------------------------------------------------------- | --------------------------------------- |
| Freight paid directly to transporter with PAN known | Yes, deduct TDS (2% under Section 194C) |
| Freight reimbursed via seller’s purchase invoice (transporter unknown) | No TDS on freight |

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If you want, I can also help explain TDS provisions on transport services in detail or how to handle it when transporter is known. Let me know!

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