I AM A BOOKING TRANSPORTER , I AM HIRING VEHICLES FROM THE BROKER TRANSPORTER AND DEDUCTING THE TDS FROM THERE FREIGHT AMOUNT BUT HAVE SHORT PAID THE TDS NOW WHAT SHOUDL I DO, AND WHAT IF A.O. FOUND OUT THAT I HAVE SHORT PAID THE TDS DEDUCTED BY ME

Dear Vijay,

Do Not Worry, deposit short paid TDS with Interest Now.

Dear All

Please let me Know

1. if it is First year of the Proprietor ship firm i.e F.Y 2008-09 and Sales Exceed Rs 40,00,000/-whether TDS is requried to be deducted on Freight  assume that it exceed exempted limit

Sandeep Sir,

I think, TDS is to be deducted on freight in your case as the gross turnover crossed Rs.40 lakhs.

Dear Mr Bansal, in my opinion, there is no liability of your company to deduct TDS as the contract with the transporter is of the Supplier and not yours. In either case, the supplier will be liable to deduct the tax from the payments made to the transporter. The supplier is just claiming the reimbursement of the transportation charges / frieght from you. So no need to deduct tax at source. 

Mr Amol,

Can u just clarify me about TDS on freight charges paid by a logistics company if the company pays freight Rs.20000 and reimburses Rs.30000 from the customer.As it is not a pure reimbursement i am not sure abt TDS in this aspect...

Mr. Vinod, even if the company has paid Rs.20000/- as freight, and has collected Rs.30000 from the customer, the TDS liability will not be on the customer. In this, case, the supplier will deduct tax on Rs. 20000/- only.

As the company has collected Rs. 30000/- it shall have the following effect.

Rs. 20000/- paid to the transporter will be debited to Profit and Loss account.

Rs. 30000/- collected shall be credited to Profit and loss account, eventually considered as income.

However, the TDS liability will not come on the customer. 

Thanks for ur reply Sir.But my query is whether TDS is to be deducted on Rs.20000 or not.If it is ocean freight TDS is not required to be deducted but if it is AIr freight then whats the imlication..

TDS has to be deducted on the payment made to transporter, i.e. Rs. 20000/-

For the second question, in case there is no specific exclusion, the expenditure if satisfies the conditions of the Section shall attract the TDS liability. If Air Mail is not specifically excluded and also the expenditure so incurred satisfies the conditions given in the Section 194C, i.e. if there's a contract for the same, it will come under the scope of TDS.

Thanks Sir..I got my doubt clarified...

i have to pay Rs. 88000 for frieght charges please tell me about rate of tds is i have to dedact tds or not