TDS 194C Reimbursement of Freight

5250 views 8 replies

As per the contract with suppliers, my company have to reimbursement 25% of the freight incurred by them to send materials to us. We are Claiming this expense under the head “Freight Charges” and the supplier providing Debit Notes to support our Claim.

 

Please let me know that this transaction will cover Sec 194C (Transport Contract) of Income tax Act and there no need to deduct tax from source if my supplier furnishes his PAN number.  

Replies (8)

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
 
 
(an assessee, who is in possession of a goods carriage, whether taken on hire purchase or on instalments and for which the whole or part of the amount payable is still due, shall be deemed to be the owner of such goods carriage.]
 In the case told by u, the assessee is not having the ownership of the vehicles rendered on hire. Thats y, he cant claim the benefit of this section. This section is specially applicable to those assessees who owns the vehicles or had taken the vehicles on hire purchase or financing scheme.
 
(Refer sec 194C in Incometax bare act and also explanation to that Point L(ii).

since ur company has entered into the contract with the transporter, u r reimburisng 25% and rest 75% is charged by them,but liability to deduct tds has been removed on making payment to transporter from the assessment year 2010-11.therefore no liability has arisen on ur part.

yes agree with jitendra kumar. there is not any requirement to deduct TDS provided the transporter is having PAN.

Originally posted by : Chirag

yes agree with jitendra kumar. there is not any requirement to deduct TDS provided the transporter is having PAN.

 STRONGLY AGREE WITH  CHIRAG

What is the maximum limit of Freight charged to be liable for dedut the TDS, because in  new rules if the PAN card is shown the TDS should not be deducted, is it any rules for single or maximum limit of any bill of Freight to be deduct the TDS ?

There is not any monetary limit which is applicable in case of Transporter case.

HI FRDS,

PL FIND ANSWER FORTHIS

.A Ltd has purchased goods worth Rs 1 lakh from B Ltd.  B Ltd has charged freight charges Rs 1,000 and shown separately in invoice.  Should A Ltd deduct TDS on the freight charges?

 

WILL B LTD STILL BE CALLED AS CONTRACTOR FOR TRANSPORT AS TRANSPORT IS NOT ITS
ROUTINE BUSINESS...

In a transport commission company which have no own truck.this company work on a commission basis. Can any boby tell me how to enter the Freight bill raised by this to party.Further,Service tax is raised on total amount including HP Tax, Toll tax Etc.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details