TDS on Courier Service

TDS / TCS 5170 views 10 replies

As per the new rules of TDS on Transport contractor i.e who engaged in the business of carrying/plying of goods are to be taxed at Nil rate, if they provide PAN no.

In case of courier charges including parcel service, is their charges to be included in transporters category and can be taxed at Nil rate of TDS?

Pl clarify..

 

Replies (10)

Courier service is a separete service and it should not be confused with transportation of goods. The NIL rate of TDS is applicable to only those contractors who are engaged in plying/hiring goods carriage for transport of goods and hence courier service should be subjected to TDS as applicable for individuals and HUFs and others.

 

regards

 

Parag

in my view - NO

it can not be treated as Transporters

Thanks & Regards,

sunil

Yes, it  can not be treated as tranporter of goods is different from carrying the documents.

Perfect answer by Mr. Parag.

Perfect answer by Mr. Parag. You should to deduct TDS on courier service as on the basis of contractor charges, if bill threshold limit is Rs.20,000/- per contract or Rs.50,000/- p.a.

So We can take that the new rule is applicable only to GTA (Goods Transport Agencies as defined in service tax rule). Thanks to all..

I agree that Courier services will not falling under Transporters but for what will we consider for those courier services who carrying goods (Samples) or Parcels. An Exporter need to send free samples through couriers services to his customer freequentely.

 Courier is not a transportation...

Courier Service is seprate from transportaion, for this we may refer service tax rule.

Originally posted by :j.bovas
" As per the new rules of TDS on Transport contractor i.e who engaged in the business of carrying/plying of goods are to be taxed at Nil rate, if they provide PAN no.
In case of courier charges including parcel service, is their charges to be included in transporters category and can be taxed at Nil rate of TDS?
Pl clarify..
 
"


 

courier is different from transport.


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