Tds on loading & unloading charges
This query is : Resolved
Guest
Guest
(Querist)
25 January 2012
the contractor makes consolidated bill:
frieght=40,000
loading & unloading charges=6,000
GR charges =600
whether TDS is deductable u/s 194C on loading & unloading charges & GR charges.
frieght=40,000
loading & unloading charges=6,000
GR charges =600
whether TDS is deductable u/s 194C on loading & unloading charges & GR charges.
25 January 2012
According to me in the given scenario TDS needs to be deducted on total bill amount u/s 194C.
Wait for views of other experts.
Wait for views of other experts.
26 January 2012
As the amount is separately mentioned in the bill , and sub section (6) of Section 194C prescribes for non deduction in the case , when PAN is furnished by the contractor, TDS has to be deducted on the amount excluding the freight charges.
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26 January 2012
Thank you Paras Sir..Just a further query..
If in a bill reimbursement expenses is mentioned separately then whether TDS shall be deducted on amount excluding the reimbursement amount?
If in a bill reimbursement expenses is mentioned separately then whether TDS shall be deducted on amount excluding the reimbursement amount?
26 January 2012
Since the expenses included in the bill are inherent in carrying out the work , the same can be treated as an essential part of the work or service and accordingly TDS is applicable on the entire bill amount.
.
.
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Guest
Guest
(Querist)
26 January 2012
thanks sir,
just a further query...
if a contractor issue a bill showing
Freight =60,000 + 6,000=66,000. of which 6,000 is loading & unloading charges which is not written in bill.
then TDS has to be deducted loading & unloading.
just a further query...
if a contractor issue a bill showing
Freight =60,000 + 6,000=66,000. of which 6,000 is loading & unloading charges which is not written in bill.
then TDS has to be deducted loading & unloading.
27 July 2025
Great question! Let’s break this down clearly:
---
## 🔍 **Scenario Recap**
* A **consolidated bill** from a contractor is received with the following breakup:
* **Freight** = ₹60,000
* **Loading & Unloading Charges** = ₹6,000 (included within the freight, not shown separately)
* **Total Bill** = ₹66,000
* The query: Is **TDS applicable on loading & unloading charges**, especially when not itemized?
---
## ✅ **Relevant TDS Provision: Section 194C** – **Payment to contractors**
Section 194C applies **to any work contract**, including transportation (if not exempted), loading/unloading, packaging, etc.
However, there’s an **exemption under Section 194C(6)** for **freight/transportation payments**, **if the payee provides a valid PAN**.
---
### 🔍 TDS Applicability in This Case
1. **If freight and loading/unloading are itemized separately in the bill**:
* **Freight**: No TDS u/s 194C, **if PAN is provided by transporter** (per Sec 194C(6)).
* **Loading & Unloading**: TDS **is applicable** u/s 194C at **1% or 2%**, as it’s considered a **contractual job**.
2. **If NOT itemized separately** (as in your follow-up query — entire ₹66,000 shown as freight):
* Then the **entire amount is treated as transportation/freight**.
* In this case:
* **If PAN is provided by transporter**, **no TDS is required** on ₹66,000 (as per Section 194C(6)).
* If **PAN is NOT provided**, TDS @ **20%** is applicable on the entire amount.
---
## 🧾 Final Answers:
### 🔹 If loading/unloading charges are:
| Shown Separately | PAN Available | TDS Deduction |
| ---------------- | ------------- | ------------------------------------------- |
| **Yes** | Yes | TDS on loading/unloading only (not freight) |
| **No** | Yes | No TDS on full bill (treated as freight) |
| **No** | No | TDS on full bill @ 20% |
---
## ✅ Summary:
> If **loading & unloading is not separately mentioned**, and the **transporter provides PAN**, then **no TDS** is required under **Section 194C(6)** on the entire ₹66,000 bill.
Let me know if you need a draft TDS calculation or sample wording for the bill or PAN declaration!
---
## 🔍 **Scenario Recap**
* A **consolidated bill** from a contractor is received with the following breakup:
* **Freight** = ₹60,000
* **Loading & Unloading Charges** = ₹6,000 (included within the freight, not shown separately)
* **Total Bill** = ₹66,000
* The query: Is **TDS applicable on loading & unloading charges**, especially when not itemized?
---
## ✅ **Relevant TDS Provision: Section 194C** – **Payment to contractors**
Section 194C applies **to any work contract**, including transportation (if not exempted), loading/unloading, packaging, etc.
However, there’s an **exemption under Section 194C(6)** for **freight/transportation payments**, **if the payee provides a valid PAN**.
---
### 🔍 TDS Applicability in This Case
1. **If freight and loading/unloading are itemized separately in the bill**:
* **Freight**: No TDS u/s 194C, **if PAN is provided by transporter** (per Sec 194C(6)).
* **Loading & Unloading**: TDS **is applicable** u/s 194C at **1% or 2%**, as it’s considered a **contractual job**.
2. **If NOT itemized separately** (as in your follow-up query — entire ₹66,000 shown as freight):
* Then the **entire amount is treated as transportation/freight**.
* In this case:
* **If PAN is provided by transporter**, **no TDS is required** on ₹66,000 (as per Section 194C(6)).
* If **PAN is NOT provided**, TDS @ **20%** is applicable on the entire amount.
---
## 🧾 Final Answers:
### 🔹 If loading/unloading charges are:
| Shown Separately | PAN Available | TDS Deduction |
| ---------------- | ------------- | ------------------------------------------- |
| **Yes** | Yes | TDS on loading/unloading only (not freight) |
| **No** | Yes | No TDS on full bill (treated as freight) |
| **No** | No | TDS on full bill @ 20% |
---
## ✅ Summary:
> If **loading & unloading is not separately mentioned**, and the **transporter provides PAN**, then **no TDS** is required under **Section 194C(6)** on the entire ₹66,000 bill.
Let me know if you need a draft TDS calculation or sample wording for the bill or PAN declaration!
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