M/S. SHREE SHYAMJEE CONSTRUCTIONS PRIVATE LIMITED,BAGDEHI vs. ITO (TDS), SAMBALPUR

It was the submission that the bills specifically showed that the inclusive term for the sales was freight paid (FOR) sales. It was the submission that the assessee has not paid any separate transportation charges.

In reply, ld. Sr. DR submitted that the assessee has shown the transportation charges separately in its books of accounts and, therefore, the assessee should have deducted TDS on such transportation charges u/s.194C of the Act. 5. We have considered the rival submissions. A perusal of the invoice cum dispatch challan, extracted above, clearly shows that the inclusive terms for the sale of the cement was clearly FOR sales. In FOR sales, the transportation cost is also included in the cost of the material sold. Just because the seller has separated the freight charges from the selling price in its bill for the purpose of computing VAT and Entry Tax as also Excise Duty, it cannot be held that the assessee has paid transportation cost separately. A perusal of the ledger of the assessee also shows that consolidated payments have been made by the assessee. This being so, we are of the view that the assessee is not liable for deduction of TDS u/s.194C of the Act on the said transportation charges. Thus, the levy of liability u/s.201 of the Act and interest u/s.201(1A) of the Act as made by the AO and as confirmed by the ld. CIT(A) stands deleted. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 23/04/2024.