Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

TDS on warehouse charges

2152 views

Save Share

harshal vashi

employee

52 Points Posted on 11 April 2020

our company take warehousing service from vendor and he charges us on consignment basis or per week so TDS applicable as per sec 194c or 194I we have no contact with vendor he only give rate list for warehousing

Replies (3)

Quick Summary

This discussion explores the correct TDS (Tax Deducted at Source) applicability for warehouse services. The core question is whether charges fall under Section 194C (contractual work) or 194I (rent) of the Income Tax Act. The consensus suggests that the nature of the service provided, as detailed in invoices and agreements, determines the correct section. If it's purely space rental, 194I applies; if it includes additional services like loading, unloading, and security, 194C is likely the relevant section.

Spurto Consultancy Services

Consultant

1366 Points Posted on 11 April 2020

Generally the nature of contract is identified from the agreement executed between the parties and the term sa n dconditions mentioned in it.

As per your explanation, the warehouse vendor has only given you rate list for warehousing. In my opinion whether it will be only hiring service or complete management service depends upon the following:

1. The service which he mentions on the monthly invoices raised by him

2. If only rental charges - 194I will be applicable

3. If hiring +loading & unloading + security - 194C will be applicable.

harshal vashi

employee

52 Points Posted on 19 June 2020

Can anyone give case study on above case

Yogesh Gaikwad

Accountant

32 Points Posted on 26 September 2024

What are the TDS obligations on rental payments for storage services under a single rent agreement involving a storage owner, a Farmer Producer Company (FPC), a Farmer Producer Organisation (FPO), and NAFED, especially considering that the storage is provided to the FPC as a subcontractor for the FPO but End user is NAFED?