a proprietary concern engaged in the business of trading in furnace bricks having a turnover of 3 crores.
the firm pays freight charges to the transporters.
the transporter raises a bill of, say, Rs.22000/- towards freight chages. Out of which the firm pays, say, Rs.17000/- to the driver of the truck vide a bearer cheque and balance of Rs.5000/- to the transport agent. There are many such transactions.
on what amount is the TDS to be done? Rs.5000/- paid to the transporter or Rs,22000/- the entire bill amount?
Need your view on this issue?
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TDS on Freight Charges
Replies (8)
This is a problem really faced in transport industry...... But reading the provisions of the act there is noting which say that TDS is to be deducted only on 5000/-
TDS IS TO BE DEDUCTED ON 22000/- IRRESPECTIVE OF MODE OF PAYMENT AND INSTALLMENT IN WHICH PAYMENT IS MADE.
TDS IS TO BE DEDUCTED ON 22000/- IRRESPECTIVE OF MODE OF PAYMENT AND INSTALLMENT IN WHICH PAYMENT IS MADE.
deduct TDS on full amt,no exempn
No TDS is to be dudected if the payee is an individual. Since its a proprietory concern, no TDS will be deducted as sec 194C says that the TDS will come into effect only if there is a contract betwn a specified person and a contractor, and an individual is not included in the list of specified persons. its only on a contract btewn a contractor (may be individual ) and a sub-contactor that 194C wrt individual will come into effect. In this case, its not a subcontract so TDS provisions u/s 194C will not apply
as you yourself said that transporter raises a bill of 22000 and hence it is implied that it is credited in books for this amount.hence,i think, TDS on full 22000 and no exemption.
agreed with Som!!
I also agreed with Som!!!!!!!!
Sir
Tds should be deducted on rs. 22000 whether payment made in cash other wise bearer cheque because bill raises by transpoter is for rs. 22000 and as per tds rule tds should be deducted on a bill if it exceeds rs. 20000 on an indiviual bill and rs. 50000 in a year from one party
Regards
Gaurav Rastogi
pl giv me the answer for me as soon as possible
A Ltd has purchased goods worth Rs 1 lakh from B Ltd. B Ltd has charged freight charges Rs 1,000 and shown separately in invoice. Should A Ltd deduct TDS on the freight charges? Please research and let me know.
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