Tax deduction at source on Freight Charges

TDS on freight charges depends on the provider: payments to non-resident shipping lines for goods shipped from Indian ports are generally governed by Section 172 and are often exempt from standard TDS. Conversely, payments to resident transporters (by air or other modes) are subject to Section 194C, requiring a 1% or 2% deduction unless the transporter provides a PAN and declaration (under the "10 vehicles or fewer" exemption) or the payment is below the annual ₹1,00,000 threshold.