Applicability and chargiability of tds

[NEERAJ BHUTORIA]

A contract for supply of certain pumps had been made. the material had been supplied and all taxes had been levied seperately. freight of Rs 25000/- had also been charged seperately. for example Basic price 100 Excise duty, cst etc 20 freight 25 145 whether tds will be deducted on Freight part or not. TDS is not applicable on supply part

[Guest]

If the freight component is separately charged and does not forms part of the'cost/price of the product supplied' then TDS is attractable on the freight component.

AI Summary

TDS on freight applies where freight is separately charged and does not form part of the product price. Where freight is invoiced and accounted for as a distinct charge and does not form part of the cost or sale price of the goods, the freight component constitutes a separate taxable receipt for the service and is subject to TDS; the supply component taxed separately is not the subject of TDS under the same reasoning.