TDS ON FREIGHT

First of all if transported have pan than no need to deduct tds only you have show detail of reason for deduction in return and one more thing is threshold limit for single bill in current f.y. is 30,000/- and 75,000/- in whole year.

1) Pls note that a transporter having PAN, then no need to deduct TDS on his Bills.

2) If the transporter does not have PAN, deduct 20% of TDS on his Bills.

The Bill amount whatever it may be in above two situations.

In other cases, against sec.194C-Contractors: If Single Bill amount exceeds 30000/- then deduct TDS as at applicable rate  and the total value of Bills in a year exceeds 75000/- then the same is liable to deduct TDS.

Hope the above will clarified your query.

-Srinivas

SUPPOSE IT IS A CONTRACTUAL PAYMENT NOT TO THE TRANSPORTER THEN WHAT WILL BE THE ANS.