TDS on payment of Railway Freight

Shiva (CA) (37 Points)

24 December 2007  

We are manufacturers of Consumer Appliances, we have to incurr lot of expenditure on transport including Railway freight for material transportation. & we are debiting the respective vendor the actual amount of railway freight paid on their material.

Whether we have to deduct any TDs from Payment of Railway freight through our agent. & the vendor is asking for the deduction of Tds on the amount debited to him for railway freight. Is he is right?