TDS on freight

TDS 2848 views 5 replies

One of my clients is in manufacturing business. He purchases Raw materials from various suuppliers on "freight to pay basis" i.e. the freight burden is borne by the client and not the supplier.


Now the client says that there is no fixed transporter appointed by the supplier for the purpose. So when freight payment is made separately by the client, he does not know whether the total payment which he would make to that transporter during the year, go beyond Rs.50 thousand. So he is in a dilemma whether to deduct TDS u/s194C on the same or not.


Can this be a solution?? He need not deduct TDS on any transporter initially. But the moment the freight charges paid to any one goes beyond 50,000/-, he would deduct TDS in one go on the entire amount paid to him (transporter) till date.

There are no payments in excess of 20thousand at one time.


 


Please give your comments or any alternative solution to the problem.


  Thank you.

Replies (5)
Sir, The solution given by you is absolutely correct.
Dear Pawan I Would like to clarify a Point whether TDS should be deducted when Frieght is separately disclosed in the Invoice itself even if it crosses sum of Rs.50000/- in whole year? My View - No TDS should be deducted Thank you
As regards liability of deduction is concerned, thre is no doubt that if the amount crosses the said limit, TDS is to be deducted. Regarding time of deduction, I think Mr. Pawan's own suggestion is very right.
give tds rates details other than salary e.g. tds on transporter

Kindly confirm is there a prov. of TDS on payments made to Travel Agent against the Supply of Air Tickets.

In addition to the Air Ticket Cost he charges Serv. Tax.to a certain extent. Kindly confirm whether in case of service tax added and in case where service tax is not added , whether attracts prov. of TDS under Sec. 194C

 


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