TDS on Freight

This query is : Open

Prashant (Querist)
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22 April 2011 Hello,

we are into logistics business incurre cost of freight charges which is Air Freight that again consists of following factors

Basic Freight(Tariff)
(Fuel Surcharge,Surcharges,X-Ray Charges)there are taxes that airline charges

So do we need to deduct TDS u/s 194C only on basic freight or freight including other surcharges also mentioned above.

Please revert.

Thanks,
Prashant

CA. Deepak Narula

CA. Deepak Narula (Expert)
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22 April 2011 Under section 194C the TDS is to be deducted on any sum paid inclusive of all charges. So if there is no separate billing for other charges, then TDS is to be deducted on gross amount in my opinion.

Any correction in the above opinion is obliged.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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23 April 2011 In ITO vs. Dr. Willamer Schwable India (P) Ltd. [3 SOT 71 (Del.)], the Tribunal has held that reimbursement of actual expenses where no profit element is involved, is not liable for the TDS.
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