S-194c clause (6)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2012 what is difference between freight & hire charges on transporting the goods ?

whreather to deduct tax on freight or hire charges? u/s 194 c (6)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 February 2012 i) Freight ,for 194C, means transportation charges of goods.
ii) Hire charges ,for 194C, means charges paid for hiring the vehicle without control and possession of the vehicle.

If copy of PAN card is given by the transporter, no need to deduct tax.

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2012 sir,i want to clear on the following points:-
1.so i can understand that on fright tds is completely not appliacble?
2.on hire charges paid in the course of plying,hiring & lrasing business ,i stds to be deduct?

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2012 is there a thin line in meaning of transporter & plying,hiring & leasing of goods carriages?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 Great questions! Let me clarify the difference and TDS applicability under Section 194C(6) of the Income Tax Act:

1. Freight vs. Hire Charges
Freight:
Charges paid for transporting goods where the transporter uses their own vehicle or under a contract of carriage. Here, the transporter exercises control and possession over the vehicle.

Hire Charges:
Charges paid for hiring or leasing a vehicle (truck, tempo, etc.) without transferring control or possession to the hirer. The vehicle is provided for the hirer’s use, but the vehicle owner still controls it.

2. TDS Applicability under Section 194C(6)
TDS is deductible on freight charges (transportation of goods services) paid to a transporter if PAN is not provided (except if transporter provides PAN, then no TDS).

TDS is NOT deductible on hire charges paid for hiring vehicles (since this is not treated as transportation service under 194C(6)).

3. Transporter vs. Plying, Hiring & Leasing
Transporter:
Someone engaged in the business of transporting goods (they operate their own vehicles, carry goods for others, etc.).

Plying, Hiring & Leasing:
Means renting or leasing out vehicles to others without providing transportation service per se.

The key distinction is possession & control of the vehicle during transportation.

Summary Table
Payment Type Vehicle Control Is TDS Deductible u/s 194C(6)?
Freight (transportation charges) Transporter controls vehicle Yes, if no PAN
Hire charges (leasing/hiring vehicle) Hirer controls vehicle No TDS

If you pay freight charges to a transporter without PAN, you must deduct TDS under 194C(6).

If you pay hire charges for leased vehicles, no TDS is deducted under this section.

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