Tds on freight bills

TDS 1522 views 2 replies

JOMON K A

Senior Assistant Finance & Accounts

41 Points Joined April 2015

The TDS to be deducted on freight bills WEF from 01.06.15 under 194C. In our Company for small consignments, the suppliers booked the consignments through parcel services on 'to pay' basis and on delivery we pay freight charges bycash and took delivery of the consignments and no TDS is Deducted on Payment as it is a payment to GTA. it includes Freight Plus Charges like Hamali, Demurage, Door Delivery Charges, Stastical Charges Etc.... Whether there is aliablity to deduct tax on such Charges WEF 01.06.15 or on Freight only.In some cases the supplier pay the freight and we have to pay only hamali, Demurrage or Door Delivery Charges. Normally the payments exceeds the limit under 194C, Please advise

Replies (2)

Deepak Tapse

Accounts Manager - Taxation

1771 Points Joined April 2009

I think, parcel service comes under Courier Service and TDS is to be deducted. It is not a GTA. Lets see other view also.

Sudhanshu

article

62 Points Joined June 2012

WEF 01/06/2015

In case of freight, it is covered under GTA. If GTA has 10 or less goods carrage and he give decleration to deducter regarding that, then no TDS is required to deduct irrespective of payment cross the limit.
But in case if GTA has more then 10 goods carriage then deducter is required to deduct TDS on the freight amount if limit is cross.

In case of courier charges no need to deduct TDS because co. is not in agrement with the courier company.