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Tds on loading and unloading charges

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Quick Summary

TDS applies on loading and unloading charges, including freight, under Section 194C as it is treated as payment for work or labor. Deduct TDS at 1% or 2% as applicable, even if paid to transporters claiming GTA exemption.

Maunik Patel

Maunik Patel (Querist)

21 November 2013 Want to know about applicability of TDS provisions on payment of loading and unloading charges, which also inlcudes freight.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)

22 November 2013 TDS is attracted u/s 194C of the Act @ 1% or 2% as applicable..

This is because loading and unloading charges represents 'any sum paid for carrying out any work (including supply of labour)' (Read Sec 194C)

TDS is attracted even if the said amount is paid to a transporter claiming excemption as a GTA.

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