My company is a logistics service provider. From one vendor we receive Transportation bill and forwarding bill also. I receive 2 separate bills. Do we have to deduct TDS on both bills or only on forwarding bill and not deduct TDS on transportation bill.
07 June 2014
if you pay freight and transporter have PAN then no need to deduct the TDS on freight. and on forwarding bill you have to deduct u/s 194C @1% or 2% as the vendor status individual/huf or firm/ company if you make payment exceed Rs. 30000/- single bill and Rs. 75000/- in a year.
07 June 2014
But is one person give 2 bills, so we do not have to pay on transportation but on forwarding bill? So in TDS retun how will I show one party two status?
07 June 2014
You should deduct TDS only on forwarding charges. TDS deduction depend on nature of payment or expenses not on party so that you can show 2 status of 1 party in TDS return.
CAclubindia
