TDS related query

From the facts, the entire payment from your prespective is cost pf purchase. This being a purchase transaction, TDS is not applicable.

Method of billing by the vendor does not alter the substance of the contract.

hello,

No if the amount is separated than you dont need to do it. For better clarification wait for others reply....

also ask the contractor to issue separate billls.

if the amount of transmission charegs is showing separated in bill then u have no need to deduct tds bcoz this will not form part of contract price. 

Similar issue has been answered at the Expert Section at : /experts/tds-on-freight-charges-of-purchases-383155.asp

The only reason for the vendor showing the transmission charge separately is that, transimission through pipeline is a taxable service under Service Tax laws.