tds on inwardfreight

This query is : Resolved

balasundaram (Querist)
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03 March 2008 we have purchased steel. the billing pattern as follow.

Commodity Rs.
steel 1000000
Freight charges 25000
loading charges 1000
Vat @4% 41040
total 1067040

Q1. if No transport (LR copy) copy has been given
Q2. if Transpot copy has been give

what is the applicable TDS in above cases

Q3. we have posted entry in our books as follow.

particulars Dr. Cr.
Steel a/c 1001000
Inward Freight 25000
Vat 41040
Party 'x' 1067040

note: we have separated freight charges towards service tax calculation

please clarify the above queries
thank you sir
with regards.
balu

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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03 March 2008 if you paid freight seperaely then you will deduct tax but in the above case manufacturer charged transport in the bill then you are not liable to deduct tds
in service tax you are liable to pay the tax after abatement

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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03 March 2008 IF CHARGED IN BILL THAN NOT LIABLE TO DEDUCT TDS ,IF OTHERWISE THAN LIABLE TO DEDUCT TDS

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Rakesh

Rakesh (Expert)
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03 March 2008 In above case fright charges has been charged th. Bill and you have reimbursement of fright charges so TDS would not be deducted . Because LR not paid by us.
In case of service tax the liablity will be arise due to LR payment indirectely paid by you. So if the LR has charged already Service tax at the time of LR payment then none of liablity would be arise