Dear Friends,
Our company is manufacturing company. We are purchasing material from different supplier , We are facing problem regarding tds on freight which is charged by supplier on invoice bill . There is two case
Case 1 – Supplier is charging freight from us on behalf of transporter . He told that service tax liability is also is the purchaser i.e us. Now we are depositing service tax on freight. This freight is charged on Purchase bill as freight.
Now my question is TDS is to be deducted or not on that freight u/s 194 C . If yes , then We have to deducted tds of supplier or transporter. Because we are paying freight to supplier . Second question is Tds is to deducted on freight amount only or any other amount i.e bill amount.
Case 2 – Supplier is charging freight from us and service tax is paid by supplier. Freight & service tax both is shown on purchase bill. Now in this case we have to deduct tds on freight amount or total bill amount.
Please help asap.
CAclubindia
