Tds on loading & unloading

 

the contractor makes consolidated bill:
 
frieght=40,000
loading & unloading charges=6,000
GR charges =600
 
whether TDS is deductable u/s 194C on loading & unloading charges & GR charges.
Replies (4)
Originally posted by : akhil

the contractor makes consolidated bill:
frieght=40,000
loading & unloading charges=6,000
GR charges =600
whether TDS is deductable u/s 194C on loading & unloading charges & GR charges.

TDS is NOT required to be deducted on Loading & Unloading charges/GR Charges

Contracts for mere carriage of goods do not include any other services like loading and unloading and are not in any way connected with any work to be performed by carrier.

Bombay Goods Transport Association v. CBDT [1994] 76 Taxman 334/210 ITR 136 (Bom.).

Note : SLP granted [Source : [1995] 212 ITR 375 (St.)]

sir,

in the above case the writ petition was filled for tds on carriage of goods in a contract which does not include loading & unloading...

 

please clarify with other judgement.

First of all i regret for the inconvenience caused from my above reply posted inadvertently.sad

I think TDS is not required to be deducted on loading and unloading charges because

194C(6) 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.

sir, here any sum refers to any amount without any limit .It does not refers to nature of work. Business of :

Plying -to travel to fro

hiring -to hire

leasing -to allow other person to use ur property

all of the above term is attached to goods carriage--motor vehicle.

There is nothing in the amendment regarding other charges like loading & unloading.

 

 

 

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