Tds applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2011 Is TDS applicable on Bombay Port Trust Charges??
If it is applicable then in which Section & at what Rate is it Applicable?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2011 Port trust charges not covered under TDS any section

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2011 Thank You Ramesh Sir

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2011 why TDS is not deducted on B.P.T Charges & why it is not covered in any TDS section???

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Here's a clear explanation about **TDS applicability on Bombay Port Trust (BPT) charges**:

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## ❓ Is TDS applicable on Bombay Port Trust charges?

**No, TDS is generally NOT applicable on Bombay Port Trust charges.**

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## 🧐 Why is TDS not deducted on BPT charges?

* Bombay Port Trust (BPT) is a **statutory authority** established under the **Major Port Trusts Act, 1963**.
* Charges levied by BPT are **regulatory/statutory fees** for port services or use of port infrastructure.
* These charges are **not payments for services under a contract**, but **statutory dues/levies**.
* **TDS provisions under the Income Tax Act apply mainly to payments made under contracts for services, salaries, interest, rent, commission, etc.**
* Since BPT charges are statutory and not under a contractual service agreement, they **do not fall under any TDS section**.

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## 🔎 Relevant Sections:

* Section **194C** (TDS on contract payments) is **not applicable** as BPT charges are not contractual work or service.
* Section **194J** (TDS on professional/technical fees) is **not applicable** as BPT does not provide professional services but statutory services.
* Other TDS sections similarly do not apply as this is not a payment for service or income but a port trust levy.

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## 📝 Summary:

| Payment Type | TDS Applicability | Applicable Section | Reason |
| ------------------------- | ----------------- | ------------------ | --------------------------------------- |
| Bombay Port Trust Charges | No | N/A | Statutory fees, not contractual payment |

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## Additional info:

* This is similar to other **statutory charges like excise duty, customs duty**, where **TDS is not applicable**.
* Even if payment is large, **no TDS is deducted** on such port trust statutory charges.

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