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TDS on Courier Service

20 November 2007

Dear Sir,

I have engaged a regular courier service to carry our goods from abroad and paying them the charges for the same on monthly basis through cheque, but there is not any signed contract between us.

Should I deduct TDS from their bill as it is crossing Rs. 20000/-

Kindly suggest me for the same at your earliest.

Thanks & Regards,

Srijesh.

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25 Replies

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 20 November 2007

In my opinion your case falls under section 194C(1). Accordingly, if you are fulfilling other criteria, you should deduct TDS at 2%+ on the entire bill. No requirement of written contract.

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CA Harbinder (CA ) (1245 Points)
Replied 20 November 2007

The Answer to this query is yes. Acc. to Sec 194C of Income tax Act. TDS should be deducted if the amount per transaction exceeds Rs.20,000 or in aggregate Rs.50,000 @ 2%. and if we talk about validity of contract,every contract itself constitutes a contract whether written or not. if there is any other query, please feel free to write. hv a nice day

CA vishal malik (Chartered Accountant) (42 Points)
Replied 20 November 2007

An individual/HUF can deduct TDS only if it comes under sec.44AB i.e. Tax Audit.Companies have no such restrictions.Thanks.

CA vishal malik (Chartered Accountant) (42 Points)
Replied 20 November 2007

One more thing Dear Srijesh, its good for us if u would write more about ur category as an Assessee.We can give u the exact position of law.Ok. Thanks.

(Guest)

As courier service contract comes under the purview of 194C & is a contract as designated by Indian Contract Act TDS must be deducted from courier bills if it exceeds Rs. 20000/- pa.

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K V Subba Rao (Service) (2708 Points)
Replied 20 November 2007

"The carriage of documents, letters etc., is in the nature of carriage of goods and, therefore, provisions of section 194C would be attracted in respect of payments made to the couriers-Circular No. 715, dated August 8, 1995" Source: Para 159.7.3 of 29th edition of Singhania's Direct Taxes Ready Reckoner. There is therefore statutory responsibility cast on you for affecting TDS on payments made to Courier Companies, subject to limits specified in the section I HAVE BEEN WORKING FOR A COURIER COMPANY SINCE THREE YEARS

(Guest)

HELLO,

EVERYBODY

(Guest)

GOOD MORNING

(Guest)

SIR,

I want to know that if I am paid above 1 lac Rs. To a courier service in a F. y. year then I am liable or not for tds deduction. And if I am responsible then rate of deduction.

(Guest)

I am paying an average of Rs.7000/- pm(7000*12=84000(pa)) as courier charges ,Could we deduct TDS on the same

Give me details please ....

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(Guest)

Please provide me the details of TDS

(Guest)

Please provide me the details of TDS

(Guest)

TDS on courier service

(Guest)

Dear Sir,

Greetings...!!!!

I want to know that at what rate i should deduct the TDS on payment of Courier charges since the courier service is not contracted with us and the courier co. is charging the service tax on its bill