TDS on freight charges for AY 2020-21


(Querist)
04 December 2019
TDS is to be deducted u/s. 194C on freight charges paid if single payment exceeds Rs.30000/- and yearly payment exceeds Rs. 1.00 lac. If I paid freight Rs.10000+10000+10000 during April to June,19 and during July I paid Rs. 80000/-. Now during July,19, whether I have to deduct TDS on 30000/- or on 110000/- ?


CA R SEETHARAMAN (Expert)


Click to Talk 04 December 2019
Deduct TDS on 110000.

A.S.SUNDARARAJAN (Expert)
04 December 2019
TDS to be deducted at the time of payment or accounting whichever is earlier. When threshold limit exceeds, TDS is to be deducted for the whole amount ( Ie TDS not deducted eralier ( as the amount is within threshold limit at that time+ current payment).

In your case TDS is to be deducted for Rs.110000 ( 80000 + 30000) @ 1% Rs.1100/- in July 19 and balance payment of Rs.78.900/- ( Rs.80000-1100) to be given to transporter.

Mahabir Prasad Agarwal (Querist)
04 December 2019
Thanks for your quick reply

Mahabir Prasad Agarwal (Querist)
04 December 2019
Sir, if a single freight payment exceeds Rs. 35,000/- and a payment of 10000/- is also made in same month. Whether TDS will be deducted on 35000/- or on 45000/- ?

A.S.SUNDARARAJAN (Expert)
04 December 2019
If single payment exceeds Rs.35,000/-, then TDS to be deducted for that amount. TDS need not be deducted for Rs.10,000/- as long as the total amount paid or accounted within the threshold limit.


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