TDS on reimbursement of freight

[Atul Kumar]

We have placed a purchase order in a vendor for purchase of sand. As per po terms rate is ₹ 1000 per ton for sand and ₹ 1000 per ton as freight.

Vendor is giving bills for sand and freight separately. Are we suppose to deduct TDs on reimbursement of freight.

As per PO terms freight is inclusive of service tax.

AI Summary

TDS Not Applicable on Reimbursement of Freight Charges When Supported by Actual Bills for Sand Purchase Order A query was raised regarding the applicability of Tax Deducted at Source (TDS) on the reimbursement of freight charges for a purchase order involving sand. The purchase order specifies a rate of 1000 per ton for both sand and freight, with the vendor providing separate bills for each. The freight charges include service tax. The response clarified that TDS is not applicable on the reimbursement of expenses if they are supported by actual bills.