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Income tax

sksubhani (Audit) (37 Points)

22 December 2016

I have purchase Chilli from out of state he given bill one for sale value and other one freight. this condition TDS Apply?

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4 Replies

Sudiesh (Audit Assistant) (527 Points)
Replied 22 December 2016

TDS will applicable only for Freight u/s 194C .if your single freight bills exceeds 30,000 or aggregate exceed 1,00,000 you have to deduct tax. if you are an individual you are responsible to deduct only if you are liable to audit u/s 44AB in previous year.

sksubhani (Audit) (37 Points)
Replied 22 December 2016

Thank You and i have one more question if The frieght include in same purchase bill TDS Will Apply or Not?

Sayee Prem (Articles) (181 Points)
Replied 22 December 2016

*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.

Sayee Prem (Articles) (181 Points)
Replied 22 December 2016

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.