TDS ON Freight

Its your purchase cost. Not cartage. so no TDS attract on sale purchase

As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.

So as per my view  the TDS will deduct by the supplier coz  he will come under above provision. as he is hiring the transport.

waiting for expert view also 

Apart  from above answer, TDS will not be deducted  because of section 192C provide " any amount paid to Contractor" in this case  your company not directly  paid to contractor or conctract ( whether formal or informal ) made   is not  with your company.

Hence tds will not be applicable.

i am agree with ashish sharam becoz it is a supplier's liabilities he hire transpoter not you

TDS is not atttracted in this case t is just ur inward cost....

it is just inward cost......no liability of tds ..its on supplier to deduct tds from transporter...if applicable...as if transporrter quote pan  then supplier also dont need to deduct tds........

It is pertinent to know in whoose name Bilty is issued i.e. Consignor/Consignee.Irrespective of accounting treatment to capitalise or not, TDS libilty is seprate issue.

 If PAN no. of supplier is not avilable, need to deducted TDS on freight.

Salman Ahmad

Sultanpur(UP)

Its your purchase cost. Not cartage. so no TDS attract on sale purchase

Steel : 20 M.T x Rate 30000/- = 600000
Add : Excise 61800
Add : - CST 13236
Add: Freight charges 20000
(1000/- per M.T)
Total : 695036

Term Papers   

If any contract value exceeds Rs 20,000 or Rs. 50,000 in the aggregate during the financial year, you must deduct TDS at 2.06% of the payment if payment to contractor (for contracts other than advertising contracts). (Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).Intermodal Services