Tds

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praful (Querist)
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11 October 2011 WE HAVE PURCHASED RAW MATERIAL AND PARTY IN CHARGING TRASPORT CHARGES SEPRATLY IN BILL IFSELF, WHETHER WE HAVE TO DEDUCT TDS ON TRANSPORT CHARGES ? AND ALSO CLARIFY THAT NIL TDS ON FREIGHT PROVISION U/S 194C IS AVALABLE ONLY TO TRASPORTER ?

Preety Parik

Preety Parik (Expert)
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11 October 2011 In my opinion, no need to deduct tax on freight payments. This is because your purchases are CIF and your paying amount on invoice bill and not against LR. Secondly, in your case, TDS liability will be on the seller who has arranged the transport carriage. Still on a safer ground u can keep PAN of seller and claim NIL deduction.
NIL rate is for payments made to transport carriage. Transport carriage has the same meaning defined u/s 44AE.