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
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
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