Tds on Freight charged by supplier

CONDITIONS FOR APPLICABILITY OF SECTION 194C 1. Any person responsible for paying any sum to any resident (hereinafter in this section referred to as the contractor) 2.for carrying out any work (including supply of labour for carrying out any work) 3.. in pursuance of a contract between the contractor and ......... Now , on the facts of your case , determine who is responsible for paying to the contractor , because ultimately it is TDS from contractor .......... The relevant facts for determiing this may be 1. Agreement with transporter is with whom 2. whether transporter is known to the company 3. who is responsible to pay to the transporter etc

Dear Bansal, Case-1 Pl deduct TDS on Freght amount charged on bill. tds certificate in the name of supplier becuase in substance you are paying to suppliers. you may ask your supplier to furnish separate Dr note for freight. Ded. TDS only on freight amount only. CASE-2 in this case you will be required to deduct TDS on Freight amount including service tax.

Mr. Vijay, I would like to rearrange the question as follows:- 01. My supplier has issued me debit note for freight paid by him to the transporter and accordingly I paid / reimbursed the sum to him. I have not entered into any work contract with transporter, neither I am the person responsible for paying the sum of contract to the transporter. I am just paying the sum to the supplier as part of my sale & purchase agreement. Whether in mine case section 194C will be applicable? In other words, if I deduct TDS u/s. 194C(1) from the supplier, whether supplier will also deduct TDS from Contractor agt. the same Contract? I will also solicite the reply of Ld. Sampat Jain. Thanks

 

 

give me detail about service tax and tds

Dear Bansal,

I think you ask your supplier to raise separate Dr. note for Freight amount. other wise ell him that we will deduct TDS on all maount.

In alternate if you do noty have option, then deduct TDS only in Freight maount only. it can be proved to IT Authority. this is the last option.

Regards

Vijay Agrawal

 

how much tds rate on frieght

Originally posted by :Guest
"	how much tds rate on frieght	"

 

2.266% or 2.06%

Supplier is charging freight from us on behalf of transporter . He is making debit note, although he has not service tax registration.He told that service tax liability is also is the purchaser i.e us. Now we are depositing service tax on freight. This freight is charged on Purchase bill as freight.

now my question is whether Service tax payable or not

 

 

Supplier is charging freight from us on behalf of transporter . He is making debit note and showing as reimbursement of freight further he does not have registration.He told that service tax liability is also is the purchaser i.e us. Now we are depositing service tax on freight. This freight is charged on Purchase bill as freight.

 

now my question is whether service tax is pyable by purhcaser

Dear Bansal,

i think Earlier i have also replied.

Case-I.: Pl deuct TDS u/s 194 Con freight amount and furnish TDS certificate in the name of supplier only becuase you are paying to supplier not to transporter.in this case either you pay service tax or supplier service tax. it has no implication

case-II: if supplier charges service tax, pl deduct tax on freight as well as dervice tax and issue tds certificate in the name of supplier only. you will not file service tax return

Trust matter is clear

kindly advise tds is to be deducted on freight amount charged in the invoice by the supplier, supplier has told us not to deduct tds , what should we do????

Dear rajeev,

How Supplier can dictate you, he is not above law. you should ask him to furnish tax exemption certificate duly take by him form IT department.

otherwise you have to deduct the TDS.

 

Regards

Vijay Agrawal

I am a transporter and i am deducting tds from the freight bills of the transporter supplying trucks to me, but i have short paid the amount to I. T. , now what will be the affect if i am been caught.