Tds on packing & forwarding charges

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

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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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.

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SANYAM ARORA

SANYAM ARORA (Expert)
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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)
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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%

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MANAN VORA

MANAN VORA (Querist)
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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)
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19 July 2012 No TDS is not applicable in the given case.

Message likes : 1 times

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