Income tax

*TDS provsions does not cover Sales or Purchases.

*In case of Freight

i) If single bill freight value exceeds Rs.30,000/- then TDS  @ 1% or 2% or 20% will be applicable (please refer sec194C)

ii) If you deal with the same person and if aggregate freight value exceeds Rs.1,00,000/-(w.e.f:01.06.2016) in a year then TDS will be applicable as per prevailing rates.

In books of account, Freight needs to be accounted separately as direct expenses eventhough both the purchase value and freight raised in the same bill. Thus applicability of TDS will be affirmative.