Tds apply on cst purchase chillies?

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sksubhani (Querist)
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22 December 2016 Dear Sir,

I have purchase Chillies From Out of State

=1000*128=128000/-
Freight 10000/-

The Seller Given Separate Bill for Both. like 128000/- for one bill and 10000/- another bill Here TDS How to Calucate

Riddhi Kadhiwala

Riddhi Kadhiwala (Expert)
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22 December 2016 TDS applicable on service / expense (Not on business Purchase).
Frieght charges are only Rs.10,000/- & separate bill is issued then TDS will not be applicable

sksubhani

sksubhani (Querist)
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22 December 2016 Dear sir,

if TDS Rs 30000/- TDS Will Apply Or Not?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here’s how TDS works for your **CST purchase of chillies** and freight charges:

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### 1. **TDS applicability on purchase of goods (like chillies)**

* **Purchase of goods is NOT subject to TDS deduction** under any section.

* So, **no TDS is applicable on Rs. 1,28,000 purchase of chillies** (goods).

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### 2. **TDS applicability on freight charges**

* Freight charges relate to **services** provided (transportation service).

* If the freight is charged separately and a **separate bill of Rs. 10,000 is issued**, then TDS on freight can be applicable **if it meets threshold**.

* **Section 194C** applies to payments to contractors for transportation services.

* Threshold limits under Section 194C (FY 2016-17):

* Single payment > Rs. 30,000 or aggregate during the year > Rs. 75,000

* Since Rs. 10,000 < Rs. 30,000, **no TDS deduction is required on freight here**.

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### 3. **Regarding your question if TDS Rs. 30,000 will apply**

* TDS is deducted on **payment amounts**, not arbitrary TDS sums.

* You should deduct TDS **only if payment to service provider exceeds threshold**.

* So, if freight charges or other service charges **cross the threshold**, then yes TDS will apply.

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### **Summary Table**

| Payment Type | Amount (Rs.) | TDS Applicability | Section |
| -------------------- | ------------ | -------------------------- | -------------- |
| Purchase of chillies | 1,28,000 | No TDS (purchase of goods) | Not applicable |
| Freight charges | 10,000 | No TDS (below threshold) | 194C |

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If freight charges exceed Rs. 30,000 or aggregate cross Rs. 75,000 in the year, then TDS must be deducted on freight under Section 194C.

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If you want, I can help you draft a note or calculation sheet for your records or to share with your vendor.

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