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Freight Payment & Tds certificate

kshashidharan11 Started The Discussion:

I am working in pvt.co. I have to make freight payt in lacs.now problem is
say i am getting LR copy from (e.g.) abc transport co. who is only broker and not owner of lorry. hence at the end point we have to pay freight to
lorry owner who is other than abc transport co. we r paying freight by cheque only fvg.lorry owner's name not abc transpor co.Whether it is
correct ? both lorry owner & abc transport co.have PAN No.s now at the
time of accounting & issuing TDS certificate on whose name i have to book accounting entry & issue TDS certificate.

please reply

kshashidharan

ranvijay0533 - Member Since: Nov 2009
i not sure about this but i can guess that all the name in invoice and payment remitted to the person/company and name on tds certificate should be same if any further update on it please ofrward to me also

thank you

mystsm - Member Since: Jan 2010
Quote:
Originally Posted by kshashidharan11 View Post
I am working in pvt.co. I have to make freight payt in lacs.now problem is
say i am getting LR copy from (e.g.) abc transport co. who is only broker and not owner of lorry. hence at the end point we have to pay freight to
lorry owner who is other than abc transport co. we r paying freight by cheque only fvg.lorry owner's name not abc transpor co.Whether it is
correct ? both lorry owner & abc transport co.have PAN No.s now at the
time of accounting & issuing TDS certificate on whose name i have to book accounting entry & issue TDS certificate.

please reply

kshashidharan
Dear Mr Sashidharan
Pls clarify if the lorry owner is the owner of abc transport? If no then how is abc transport related to you?

If both are different, then tommorrow if abc transport claims for the freight, what are you going to do.

In this case, you could also issue the TDS certificate in the name of the lorry owner as he has got PAN which means he is also an assessee.
Section 194C (TDS on Contract) clearly states the the contract could be of oral in nature which means a mere understanding between two parties can be termed as a contract.

Hope this clarifies your doubt.
Radhakrishnan N

Sriguru - Member Since: May 2008
Dear shashidharan,

Actually a transporter agent may be owner or a lorry or he may get trucks from other transporter, but you are paying if only to the transporter agent and not to the original lorry owner(unless the agent itself the owner).

Suppose, if you book a lorry from abc transporter agent, and say he dont have own truck, he may contact a lorry owner to travel. Here the lorry name willbe registered in owner's name and he will be paid for his service by abc transporter.

Any how, the LR must state only the name of abc transporters . Because
No lorry owners will print lorry receipts of their own. The lorry owner is paid by the abc transporter in turn the abc transporter will raise freight invoice to your company with an LR carriying his concern's name as ABC TRANSPORTERS.

Hence the agreement here is with your company and the abc transporter and not in any way to any lorry transporter.

So while making payment to abc transporter, you have to deduct TDS from him and TDS certificate have to be issued in the name of abc transporter.

I hope this will clarify you doubt absolutely.


Regards
Sriguru

kshashidharan11 - Member Since: Feb 2010
yes ! thank u very much for clarifing me. i was making mistake. Thanks once again mr.sriguru & Radhakrishnan N. from k.shashidharan

krishnatiwari - Member Since: May 2010
if tds not deposited can we issue certificate as to be deposited, is this valid for tax claim. K.K. Tiwari

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