Tds apply on cst purchase chillies?
This query is : Resolved
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
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
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
Frieght charges are only Rs.10,000/- & separate bill is issued then TDS will not be applicable
22 December 2016
Dear sir,
if TDS Rs 30000/- TDS Will Apply Or Not?
if TDS Rs 30000/- TDS Will Apply Or Not?
27 July 2025
Here’s how TDS works for your **CST purchase of chillies** and freight charges:
---
### 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).
---
### 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**.
---
### 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.
---
### **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 |
---
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.
---
If you want, I can help you draft a note or calculation sheet for your records or to share with your vendor.
Need help with that?
---
### 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).
---
### 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**.
---
### 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.
---
### **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 |
---
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.
---
If you want, I can help you draft a note or calculation sheet for your records or to share with your vendor.
Need help with that?
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