Tds on combine invoice of transport and courier

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2012 Our company regularly transports the material and also sends the courier through one courier company. The courier company in turn raises the single invoice for both the services provided during the month. So, whether the tds is to be deducted on total invoice amt or if bifurcation is possible & available then only on courier services including service tax on it?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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18 October 2012 TDS must be deducted.
if there is only one combine invoice than on full amount TDS will be deducted. Tell the party to raise separate invoice else they can get refund of that TDS in their return.

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2012 Thank you sir

Sir, if you could further clarify how our company is to pay service tax on reverse charge basis to government? Here we are suppose to pay 100% service tax on transportation exp incurred to govt or 100% service tax on courier & transport exp incurred to govt?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Here’s how TDS and service tax work in your case with combined transport and courier invoice:

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### TDS on Combined Invoice (Transport + Courier)

* If the courier company gives **one combined invoice** for both services, **TDS should ideally be deducted on the full invoice amount** (excluding service tax).
* However, since transport and courier services attract different TDS provisions, the recommended practice is to **ask the service provider to issue separate invoices** for transport and courier services.
* If separate invoices are not available, deduct TDS on the total amount (excluding service tax). The vendor can claim refund of excess TDS in their income tax return.

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### Service Tax Reverse Charge

* **For transport services:**
As per Service Tax law, if transport service is received from a goods transport agency (GTA) and the service provider is unregistered or falls under reverse charge, the recipient has to pay service tax on a reverse charge basis (usually 100% of service tax on transport charges).

* **For courier services:**
Courier services are normally subject to service tax paid by the service provider (not on reverse charge basis).

* **In your case:**

* You should pay **reverse charge service tax only on the transport portion** of the expense (if applicable), i.e., 100% of service tax on transport charges to the government.
* For courier charges, the courier company will pay service tax and you do not pay reverse charge.

* **Important:** To correctly apply reverse charge and avoid confusion, **separate invoices for courier and transport services** are essential.

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### Summary:

| Aspect | Action Required |
| ---------------------------- | ------------------------------------------------------------------------------------------------ |
| TDS | Deduct on full combined invoice amount if no bifurcation; request separate invoices for accuracy |
| Service Tax (Reverse Charge) | Pay reverse charge only on transport service portion, not on courier service |

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**Tip:** Push the service provider to issue separate invoices for transport and courier to ensure compliance with TDS and service tax rules.

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If you want, I can help draft a formal request for separate invoices or prepare a quick note for your accounts team. Would that help?

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