TDS Deduction

If a constrction company purchased Iron & steel and the purchaser has charged freight in it invoice showing freight as separate line item. Than TDS should be deducted or not. If yes than at what rate and on what amount.

Replies (12)
TDS on freight is @ 2% u/s 194C

TDS under sec 194C if transporter quoted his pan then no tds applicable from 1.10.2009

if pan not quoted on Ind/HUF TDS @ 1% and others case TDS @ 2% applicable

 

But we have not recieved any bill from the transporter. The freight charges are added by the supplier of goods in his own bill as separate line item.

I could not understand the query. Can you pls tell me why purchaser will add Freight in invoice. I think it should be added by seller only.

Originally posted by :CA. Rashi Goyal
" If a constrction company purchased Iron & steel and the purchaser has charged freight in it invoice showing freight as separate line item. Than TDS should be deducted or not. If yes than at what rate and on what amount. "

There are two conditions

1 If freight is by railway then no tds required to be deducted if company provides you railway receipt.

2 other than railway tds @ 2.06 or 2.266 % upto 30/09/2009. From 1/10/2009 no tds is to be deducted for tranporters if they provide their pan and if pan is not provided tds @ 20% + surcharge + education cess

Sorry, I wrongly mentioned purchaser instead of seller.

Hi,

In my query transporter is not involved. The supplier of goods charged freight from us and provided the delievery of goods at our door. The amount of freight which the supplier charged is shown as separate line item in the invoice send to us. Now the query is weather the TDS is to deducted or not. If yes, that at what rate and on what amount.

if a person buying four wheeler and the price vehicle include annual maintenance contract charges then will it amounts to TDS deductions

no tds is not deducted on freight because tds on freight abolise w.e.f. 01.10.2009

as per my opinion u should not deduct tds on freight charged by supplier it should be d part of ur purchase price & u should charge that amt in ur purchase a/c in Trading A/c. however d seller should be liable to deduct tds on payment to transporters


 

TDS CAN,T BE DEDUCTED ON THE TRADIN ITEMS HENSE TDS CAN BE DEDUCTED ONLY ON THE AMT OF FRIGHT SINCE AS PER SECTION 194C WORK CONTRACT  INCLUDE CARRIEGE OF PASSENGER  & GOODS OTHER THAN RAILWAY

RATE:-2%+10%SRCHARGE+3% CESS

tds has been abolished on freight from1-10-2009

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