Tds on packing & forwarding charges

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This query is : Resolved

Quick Summary

TDS on packing and forwarding charges applies under Section 194C at 1 percent or 2 percent if treated as separate service. If included in purchase invoice of goods, it is part of cost and no TDS is applicable.

MANAN VORA

MANAN VORA (Querist)

19 July 2012 Dear All

Good Morning..

I have a query because there is difference opinions in our company group.

Is TDS applicable on Packing & Forwarding Charges? if Yes, Under which Section and Rate of TDS ?

If No, Why TDS not applicable...

Request to reply aeap.

Regards,

MANAN VORA

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)

19 July 2012 i dont think in this issue tds applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 July 2012 Yes Section 194C will be applicable.

Rate:
Individual/HUF @1%
Others 2%
No PAN 20%.

Threshold Limit:

Single Bill Rs 30000/-
Annual Payment Rs 75000/- p.a.

Message likes : 1 times

SANYAM ARORA

SANYAM ARORA (Expert)

19 July 2012 Yes it will be covered under section 194C
And the rate will be the same suggested by Sanjay Sir

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)

19 July 2012 applicable under 194c only cut off amount 30000/- for single payment and 75000/- pa payment - for individul/HUF -1% and others -2%

Message likes : 1 times

MANAN VORA

MANAN VORA (Querist)

19 July 2012 Thanks to all for their suggestions.

But still i want some clarifications.

Suppose we have place an order for machinery to a supplier. Supplier despatches the material and alongwith material cost, he is charging Packing and forwarding charges in his invoice. Now is TDS applicable on such packing & forwarding charges.

Once again expecting prompt reply...

Regards,

MANAN VORA

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 July 2012 No TDS is not applicable in the given case.

Message likes : 1 times

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