TDS on Transport

TDS 2251 views 8 replies

nitin

C.A. Final 2nd group

58 Points Joined February 2010

hiii...members and friends....

I AM HAVING A PROBLEM REGARDING DEDUCTION OF TDS ON TRANSPORT.

I AM HAVING A PRACTICAL CASE IN MY AUDIT:

I AM PURCHASING GOODS FROM A PARTY AND THAT PARTY IS CHARGING FREIGHT FOR THE GOODS SENDING TO ME IN EVERY BILL OF PURCHSE AND THE PER BILL FREIGHT AMOUNT IS APPROAX 6000/- AND DURING THE YEAR I AM PURCHASING SUPPOSE 20 TIMES i.e. TOTAL FREIGHT APPROX CHARGED IS 120000/- (6000 * 20) AND IN 15 CASES OUT OF 20 THE TRANSPORTER IS SAME. NOW I WANT TO KNOW THAT IF THE TRANSPORTER IS NOT HAVING PAN NO. THAN THE LIABILITY OF DEDUCTING TDS @ 20% IS OF THE CREDITOR (i.e. FROM WHOM I AM PURCHASING GOODS) OR OF MINE. I THINK IT IS LIABIITY OF CREDITOR BECAUSE THE CREDITOR IS LIABLE TO PAY THE FREIGHT AMOUNT TO TRANSPORTER. AND I HAVE TO PAY THE AMOUNT OF FREIGHT WITH PURCHSE GOODS AMOUNT TO THE CREDITOR...SO CORRECT ME WHETHER I AM WRONG...

COMMENTS ARE WELCOMED.....

THANKS IN ADVANCE.....

Replies (8)

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Joined May 2011

in this case you have to pay amount to creditor hence you will see only creditor' s pan

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

its upto your creditor to pay in actual to transport, he has to look such facts and comply

in your case you have to book the whole amount in purchase then make it posted to freight / carrige inward by JV

praveen

Chartered Accountant

6971 Points Joined September 2007

Ya you are correct you can book the full amount as purchases and pay the amount to the creditor.

Deduction of Tax falls upon the supplier

anirban dev

....... :)

151 Points Joined September 2008

You have to be concerned with the party on whose bill you are making the payment ....

in the current case you are making payment to the Creditor on the Amount of bill raised by him, not to the Transporter .... so the Liability of Deducting TDS on payments to Transporter lies with the Creditor not you ....

You have to be concerned upon the payments made to the creditor .....

MAYURI TULSYAN

ca final

23 Points Joined August 2009

here in this case, since you are paying to the creditor, hence you are only liable ot check the creditor's PAN. The liability for deduction of tax for the payment falls on the creditor..

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Joined May 2010

Fully Agreed with views of anirban dev.

capawangupta

chief analyst

62 Points Joined January 2010

Dear Nitin as per your query about TDS responsibility this is only fix for creditor not u or any one in this case anirban dev is right u are paying bill amount including fright.

Raghavendra

N.A.

140 Points Joined April 2011

In my opinion it is clearly stated that TDS will be deducted when the credit or payment whichever is earlier. Hence it is the Liability of the party who is giving the credit or payment to verify the PAN.