TDS on loading charge

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This discussion clarifies whether TDS (Tax Deducted at Source) needs to be deducted on loading charges for factory building materials. If loading and freight charges are part of the overall invoice and the total exceeds £30,000, and if labour charges are specifically itemised, then TDS may be applicable on the entire amount under Section 194C. However, if the loading charge is a standalone amount below the exemption limit, TDS is not required.

Deepak Rawat

Deepak Rawat (Querist)
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02 August 2022 I had purchase M S Angle for factory building expansion purpose saller showing loading charge on invoice of Rs. 2000/-, & freight 5000/- total bill amount with GST RS 15,00,000/-, should I deduct TDS on this invoice under labour charges, Kindly guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 August 2022 If that is the only amount, it is under exemption limit. No TDS u/s. 194C of the act.

Deepak Rawat

Deepak Rawat (Querist)
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05 September 2022 But if any seller add labour charges on his invoice & total invoice value above 30k it's buyer liability to deduct TDS on whole invoice amount.

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