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TDS on freight charges in an invoice.

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Himanshu Singh

30 Points Posted on 16 January 2020

If an amount of 50000 were charged by the supplier in an invoice through which goods are supplied, by supplier.
Then will it become our liability to deduct TDS on freight charges in total invoice amount?

Replies (2)

Quick Summary

This discussion clarifies whether Tax Deducted at Source (TDS) needs to be applied to freight charges included in an invoice for goods supplied. Generally, if the freight is integral to the sale of goods, no TDS is required. However, if the total invoice amount, including freight, exceeds Rs 30,000 and the contract specifies delivery, TDS might be applicable under Section 194C on the full amount.

amit chakraborty

student

22 Points Posted on 16 January 2020

No TDS is needed to be deducted in case of sale of goods. If the delivery of goods is necessary\inevitable to complete the sale, then such delivery becomes part of sale of goods and hence no TDS is deductible. Also if the contract of sale contains clause of delivery of goods for which freight is charged,such transportation becomes an ancillary service and hence no TDS is deductible.