17 January 2009
Whether TDS is to be deducted u/s 194C when a separate bill of freight / loading /unloading of material is received from a supplier of material
TDS has to be affected when payments towards freight are made to Transporters (Circular : No. 715, dated 8-8-1995).
There is no requirement to affect TDS when freight payment is made to Supplier, irrespective of whether Supplier includes both cost of goods and freight in one consolidated bill or raises two seperate bills for cost of goods and freight
Supplier has claimed freight charges from Buyer. So it is imperative that freight payment to Transport Contractor is made by Supplier. So obligation to affect TDS rests on the Supplier and not Buyer.
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