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

[Surender Gupta]

The issue of tds arises only if payment is made to transporter. Since you are not making payment to transporter but to supplier, it is in the form of reimbursement of expenses, therefore there is requirement of deduction of TDS on such charges.

[BHASKER MURALI]

Dear Sirm, This is for your reply. The issue of tds arises only if payment is made to transporter. Since you are not making payment to transporter but to supplier, it is in the form of reimbursement of expenses, therefore there is requirement of deduction of TDS on such charges. Q. As per as reiumbersement is concern is completly exempted from income tax you are also replied the same as no need to deduct TDS ok, Can i show the Transportation is sepratly in our books or can i add with the material please advice Thank you

[Surender Gupta]

Since the amount paid to suppliers towards cost of transportation appears not to be subject to TDS, the manner of entry or treatment in books of account should not affect the same.

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.