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

AI Summary

TDS Applicable on Separately Billed Freight Charges in Pump Supply Contracts A contract was made for the supply of pumps, with taxes and freight charges listed separately. The query raised was whether Tax Deducted at Source (TDS) should be applied to the freight charges. The response clarified that if the freight charges are separately billed and do not constitute part of the product's cost or price, TDS is applicable on the freight component.