Tds u/s 194 c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 January 2013
when a unit is paying worker as loading charges ...will tds u/s 194 c be applicable ?
and there is no such contract with them .
and there is no such contract with them .
08 January 2013
If the limit prescribed under section 194C crosses then TDS will be deducted.
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 January 2013
thanx for the reply ..but further to add on it ..will there be any service tax implication as per cargo handling services ..?
28 July 2025
Here’s a detailed take on your query about **TDS under Section 194C** and **Service Tax implications** for loading charges paid to workers:
---
### 1. **TDS under Section 194C on Loading Charges to Workers**
* **Section 194C** applies to payments made to contractors for carrying out any work (including supply of labor for carrying out work).
* Loading charges paid to workers or laborers generally **qualify as contract work** if there is a contract or agreement.
* However, you mentioned **no contract exists** with these workers.
* **Is TDS applicable without a contract?**
* Even in the absence of a formal written contract, if there is a payment for carrying out any work or service, TDS under Section 194C is applicable once the payment crosses the threshold limit (₹30,000 per contract or ₹1,00,000 in aggregate during the year).
* So, if the payment to a worker for loading exceeds the prescribed limits, TDS should be deducted.
---
### 2. **Service Tax Implication on Cargo Handling / Loading Charges**
* Service Tax (now subsumed under GST but applicable pre-GST) was levied on **cargo handling services**.
* **Cargo handling services** include loading/unloading of goods at any place.
* If the workers are carrying out such services on your behalf (especially if hired through a contractor or as a service), **service tax was applicable** on the value of such services.
* If these workers are your own employees (on your payroll), service tax is generally **not applicable** on their wages.
* If payment is to an independent service provider (contractor), service tax liability exists on the service provider, and **reverse charge** might apply to you in certain cases.
---
### Summary:
| Payment to Workers for Loading | TDS under 194C | Service Tax Applicability |
| ------------------------------- | ------------------------------------------------- | ------------------------------------------------- |
| No contract, direct payment | TDS applicable if limits exceeded | Usually not applicable if workers are employees |
| Payment to contractor | TDS applicable as per limit | Service tax applicable on cargo handling services |
| Payment without formal contract | TDS still applicable if payment crosses threshold | Depends on nature of payment and service provider |
---
### Practical advice:
* Even if no written contract exists, deduct TDS if payments exceed limits.
* For service tax (pre-GST), verify if service provider is liable or if reverse charge applies.
* Post-GST, loading/unloading may attract GST, so check applicability under GST law.
---
If you want, I can help you draft TDS entries or advise on compliance steps for service tax / GST related to cargo handling. Want me to do that?
---
### 1. **TDS under Section 194C on Loading Charges to Workers**
* **Section 194C** applies to payments made to contractors for carrying out any work (including supply of labor for carrying out work).
* Loading charges paid to workers or laborers generally **qualify as contract work** if there is a contract or agreement.
* However, you mentioned **no contract exists** with these workers.
* **Is TDS applicable without a contract?**
* Even in the absence of a formal written contract, if there is a payment for carrying out any work or service, TDS under Section 194C is applicable once the payment crosses the threshold limit (₹30,000 per contract or ₹1,00,000 in aggregate during the year).
* So, if the payment to a worker for loading exceeds the prescribed limits, TDS should be deducted.
---
### 2. **Service Tax Implication on Cargo Handling / Loading Charges**
* Service Tax (now subsumed under GST but applicable pre-GST) was levied on **cargo handling services**.
* **Cargo handling services** include loading/unloading of goods at any place.
* If the workers are carrying out such services on your behalf (especially if hired through a contractor or as a service), **service tax was applicable** on the value of such services.
* If these workers are your own employees (on your payroll), service tax is generally **not applicable** on their wages.
* If payment is to an independent service provider (contractor), service tax liability exists on the service provider, and **reverse charge** might apply to you in certain cases.
---
### Summary:
| Payment to Workers for Loading | TDS under 194C | Service Tax Applicability |
| ------------------------------- | ------------------------------------------------- | ------------------------------------------------- |
| No contract, direct payment | TDS applicable if limits exceeded | Usually not applicable if workers are employees |
| Payment to contractor | TDS applicable as per limit | Service tax applicable on cargo handling services |
| Payment without formal contract | TDS still applicable if payment crosses threshold | Depends on nature of payment and service provider |
---
### Practical advice:
* Even if no written contract exists, deduct TDS if payments exceed limits.
* For service tax (pre-GST), verify if service provider is liable or if reverse charge applies.
* Post-GST, loading/unloading may attract GST, so check applicability under GST law.
---
If you want, I can help you draft TDS entries or advise on compliance steps for service tax / GST related to cargo handling. Want me to do that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- ITR validation error - Balance sheet is not filled
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR 1: Details for showing Exempt Income
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
