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CIT v. Bhagwati Steels {PLIniaIJ & Haryana HC)

TDS not deductible on freight Chargers Shown
separately in Goods Purchase Bill

CIT v. Bhagwati Steels {PLIniaIJ & Haryana HC) In the instant case. it was helcl that

the payment ef freight charges hy the assessee to the truck drivers was based en

incliviclual GRs 1which represented incliviclual ancl separate contracts and there was no

single eentraet fer carriage er transportation ef geecle referred to between assessee

and the impugnecl parties `which would make the assessee liable for deduction of tax

at source under section 194C of the Act.

It is evident that the expenses cffreight incurred by Mis Tata Steel, which have been shcwn

separatelyr in the invoices raised cn the assessee, cannct be construed tc infer that the

assesses has paid any amcunt for transportation cf gccds separately than the ccst cf the

gcccls purchased by it. Ostensibly, in such circumstances, there would nct arise any

necessity of deduction of tax at source on the freight amount separately shown in the

Inv…