TDS FOR REIMBURSEMENT EXPENSES

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R.Vijayakumar (Querist)
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13 November 2009 I PAID FREGIHT CHARGES TO TRANSPORT PARTY FOR GOODS INWARD AFTERWARDS I REDUCE THE FREGIHT AMOUNT AGAINST PURCHASE AMOUNT TNE BALANCE AMOUNT PAID TO THE SELLER - WHETHER TDS IS APPLICABLE FOR THIS FREGIHT CHARGES

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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13 November 2009 Yes TDS is deductible even on Freight paid on "to pay basis". Although you are not incurring the freight expenses but you step into the shoes of deductor.

However w.e.f 01.10.2009 TDS is not deductible for payments to transporters of goods carriage if they can produce PAN to you.