Lifting and cross charges

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Discussion is about whether TDS applies on freight bill containing lifting and cross charges recovered by transporter. Clarification: since transporter is not a pure agent and invoices are in its name, TDS u/s 194C applies on gross service value (2000) excluding GST, as per CBDT Circular 715.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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14 March 2026 Transporter charge freight 1000
Lifting charges , 500
Cross charges 500
Sub total 2000
SGST 180
CGST 180
Invoice total 2360
In above 1000 is transporter's own service.
And lifting charges & cross charges service is obtained by transporter from other parties. Lifting & cross charges service invoice is in the name of Transporter. The same expenses and gst component transporter recovered from us. There is no additions.
( reimbursement invoice is in transporter name, not our name)

My Question -
Is tds required to deduct on reimbursement expenses.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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15 March 2026 Because the original invoices for the lifting and cross charges are in the transporter's name, the transporter is not acting as a "pure agent." These charges are considered out-of-pocket expenses incurred by the transporter to provide the service. Therefore, as per CBDT Circular 715, TDS under Section 194C must be deducted on the gross taxable value of the service (₹2000), excluding the separately shown GST component.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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15 March 2026 Ok sir, धन्यवाद सर 🙏🙏🙏🌹🌹🌹

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