Tds on freight & warehousing charges

This query is : Open

udit (Querist)
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25 September 2012 Assessee purchased goods from a vendor at a fixed rate. The vendor raised the invoice by bifurcating the selling price, freight and warehousing charges. Whether TDS is applicable on the freight & warehousing portion of the invoice or on the full value of invoice?
Whether TDS is attracted at all since the rate contract is for the supply of product?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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25 September 2012 If the purchase transactions are regular in nature and vendor charges service tax on freight and warehousing charges in bill separately, then TDS @ 2% U/s 194C is applicable.
If the transaction is one time or not regular, it is better not apply TDS provisions provided the transaction is within the limit.

udit

udit (Querist)
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26 September 2012 But TDS under section 194C is applicable when there is some work contract. It is a case of simple purchase in which rate per unit is fixed by some rate contract. while presenting the bill vendor charges freight and warehousing charges and applicable service tax on it. whether TDS applies???

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