Applicability of TDs on the transportation

[BHASKER MURALI]

Dear sir, We are purchasing materials from various suppliers which is Including Transporation, the party is showing transportation sepratly in the sale invoice, please let us know that we have to deduct TDS on the Transporation of such transportation

AI Summary

TDS Not Required on Supplier-Included Transport Charges; Only Applies if Paying Transporter Directly A query was raised regarding the applicability of Tax Deducted at Source (TDS) on transportation charges included in supplier invoices. A participant clarified that TDS is required only if payment is made directly to the transporter. Since the payment is made to the supplier, it is considered a reimbursement of expenses, and thus TDS is not applicable. The inquirer further asked about how to record transportation costs in their books, and it was suggested that the method of entry should not impact the TDS requirement.