TDS applicability on Delivery/Transportation charges

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This discussion clarifies the applicability of Tax Deducted at Source (TDS) on transportation charges when purchasing fixed assets. TDS under Section 194C is generally not applicable if a single transaction for transport doesn't exceed £30,000 and the total annual payments to a transporter remain below £100,000. It's important to check the aggregate annual payments to determine TDS requirements. If transportation costs are separately itemised, they should be considered for TDS calculations.

KIRAN T

KIRAN T (Querist)

14 February 2024 Hi Sir/Madam,

My Company purchased a fixed asset for Rs. 51500. Out of 50000,Rs.1500 is for transportation charges. Whether TDS applicable on Transportation charges of Rs. 1500?

RAJA P M

RAJA P M (Expert)

15 February 2024 No, TDS not applicable.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

16 September 2025 As per Section 194C of the Income-tax Act, TDS on transportation charges only applies when the monetary limits are breached. TDS under Section 194C is not required if the payment in a single transaction does not exceed Rs. 30,000 and the aggregate annual payments do not exceed Rs. 1,00,000. Check the aggregate payment over the year to decide the applicability of TDS over the transporter.

KIRAN T

KIRAN T (Querist)

16 September 2025 Hi Sir, when we calculate aggregate amount or single transaction amount, we should take only that portion of transportation charges out of total invoice amount, right sir ?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

16 September 2025 Yes, if it is specified separately as transportation charges.
While here it is reimbursement of charges paid by seller to transporter.

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