Hi everybody, it would be very helpful if you could answer my query.
So the assessee purchases goods for which an invoice is raised. In the invoice transport charges are also included which are greater than Rs. 30,000. My question is do we have to deduct TDS for transport charges which are included in the invoice. 194Q does not apply to the assessee.
Threshold Limit for deduction of TDS on payment made towards Transportation Charges under Section 194C of the Income Tax Act, 1961
- No deduction of TDS on Transportation Charges in case of payment of Rs. 30,000 in a single transaction or payment of aggregate amounts not exceeding Rs. 1,00,000.
- If it exceeds the threshold limit, then the rate of deduction as provided under Section 194C of the Act will be applicable, i.e., 1% or 2%
- As you mentioned TDS sec.194Q, it is for buyer who made purchase exceed 50 lakhs. But, you collect charge from your buyer for the transportation expenses. You should deduct this TDS against your transporter not buyer. 194Q is not applicable. 194C is correct.
CAclubindia
