TDS on Carriage Inward

This query is : Resolved

ramesh vadnala (Querist)
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27 April 2010 Our creditor for RM is charging freight charges plus service tax and same was included bill.
can we deducted TDS on freight charges u/s194C. please clarify

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 April 2010 yES, tDS WILL BE DEDUCTED , IF FREIGHT CHARGED BY PARTY EXCEEDS THE THRESHOLD LIMIT RS. 20000. (FROM 1ST JULY RS.30000)

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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27 April 2010 If we are purchaing RM that includeds freight in the same invoice, it means it is landed cost of RM.
In addition to this we are not paying freight directly to the transporter.

In your case TDS will not be applicable.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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27 April 2010 Dear Sir,

If freight is shown in bill seprately, then TDS as will be deducted irrespective of that it is part of landed cost. As well as if party is not charged service tax on freight then you have also to deposit Service tax also.

We are paying freight on bill and deducted TDS on Reliance Industries Bill and Bhansali Engg. Polymer Ltd (Rajasthan).

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 April 2010 AGREE WITH MR. BANSAL. I ALSO CAME ACROSS SUCH SITUATION IN A SCRUTINY CASE AND DCIT DISALLOWED THE FREIGHT CHARGES FOR NON DEDUCTION OF TDS.

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