We have purchased materials from a party who itself is providing the transportation facilty. Invoices for the material purchased and transportation of goods are received seperatly.
So my question is that whether we have to deduct tds while making payment of transport? and if yes at what rate?
09 September 2014
If transporter provides you PAN then TDS not required to be deducted. But the details of payment needs to be disclosed in TDS return. If PAN not provided then TDS needs to be deducted at penal rate of 20%.
With the same question mention above i want to add one more doubt which i am facing. 1. Whether we are liable to pay service tax on freight and transport under reverse charge. Party have not charge service tax for the same and not shown in invoice?? 2. We are also taking transport facility from another GTA and same is charging service tax @3.09%.So in that case if I pay service tax directly to GTA along with the bill amount then whether we are still liable to pay service tax under reverse charge?
CAclubindia
