Tds on frieght charge

TDS / TCS 468 views 3 replies

We purchases material from suppliers. Transportation arranges by suppliers and deliver goods to our factory address. Which details is given below:

Material Cost              Rs.2,10,500.00

Add : Freight Charge Rs.    31,500.00

Add : IGST                Rs.    43,560.00

Total :                        Rs.  2,85,560.00

our query is whether TDS should be deducted on above freight charges of Rs. 31,500

Replies (3)

The transportation is arranged by supplier and payment to supplier is paid by your supplier. You are paying to your supplier. You have no contract with the transporter. So no need to deduct TDS.

which entry pass is right in this situation

PURCHASE A/C -----------------------2,10,500.00

CARRIAGE INWARD A/C -----------    31,500.00

IGST A/C -------------------------------     43,560.00

                              TO   PARTY  A/C   ----------------------------2,85,560.00

OR

PURCHASE A/C --------2,42,000.00

IGST A/C ----------------    43,560.00

                    TO  PARTY  A/C   ----------------------------2,85,560.00

 

TDS not required to be deducted on above freight charges of Rs. 31,500.
You can Pass Second entry ;
i.e PURCHASE A/C ----2,42,000.00
IGST A/C ---------------- 43,560.00
TO PARTY A/C --------2,85,560.00


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