Tds % for shippment bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2012 Dear Sir

pls tell me when we r paying the shipment bill amt how much % of tds we dedct (2% or 10%)

with thks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 April 2012 It may depend upon the fact that whether the Receiver of Shipping Bill Amount is a Resident or a non resident.
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Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 Dear Paras Bafna Sir
thks....
it comes under a resident
my query is that how much % we deduct
and shipping bill falls on which section in tds

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 For **shipment bill payments** to a **resident**, the applicable TDS section and rate depend on the nature of the service or contract underlying the shipment bill. Here’s a quick guide:

### 1. If shipment bill is for **freight charges/transport services**:

* **Section:** 194C (Payment to contractors/sub-contractors)
* **TDS rate:**

* 1% if payment is to an individual or HUF
* 2% if payment is to others (like companies)

### 2. If shipment bill includes **other services** (like commission, brokerage):

* Then relevant sections like 194H (commission) or 194J (professional fees) may apply.

### Summary for your case (resident party, shipment bill for freight services):

* Deduct TDS under **Section 194C**
* Rate usually **2%** if payee is a company or firm
* Rate **1%** if payee is individual/HUF

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**Note:** TDS is not applicable on the **shipping bill itself** (which is a customs document), but on the payment made for services reflected in the shipment bill (like freight or transportation).

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