Upgrad LLM

tds on invoice including freight charges

S (the supplier) raised invoice upon P( the purchaser) for an amount that includes price of the goods supplied and the charges that S has to pay to T (the transporter) for transportation of the goods to P. The transportation charges are just recovered by P from S on behalf of T and the transportation bill raised by T on S is also enclosed with the invoice given by S to P.

Should P deduct TDS under contact from the amount given to the S towards payment and reimbursement of freight on behalf of T. In my opinion the tax should be  deducted by P on its payment to T and noy by P. Please reply







If Transporters invoice is on the name of purchaser & invoice is attached with suppliers invoice ethen TDS to ber deducted by the P.


finanance manager

two issues involved . if  s has claimed  transport charges separately  P has to make tds on S .  P  should not  make tds   on T  .  S  has to make tds on  T bill.  since the T's bill  in the name of  P only  there is no need to make tds  in the name of T by  P


it is very simple that , the receiver of  the invoice , it mean that invoice should be in the name of them, those who only detect the tds while paying the amount . btr seperate invoice is maintain one for trasportation and another for goods




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