Applicability of TDS on clearing and forwarding charges

[madhavvan n]

clearing and forwarding charges are they subject to tds is rutb eucted only if one payment exceeds rs. 20000/- or annula contract value exceeds rs. 50000

[Ravi Chopra]

If amount for single bill or single payment is not exceeding Rs. 20,000/- no need to deduct TDS. On the other side, where gross amount for more than one bill (each are not exceeding Rs.20,000/-) is likely to paid or paid is exceeding Rs. 50,000/- you need to deduct TDS. Kindly refer to provisions of Section 194C - sub section (3) clause (i)

AI Summary

TDS on contract payments applies to clearing and forwarding charges when single payment or aggregate thresholds are exceeded. TDS on clearing and forwarding charges depends on payment thresholds: no TDS if a single invoice does not exceed the lower threshold; TDS is required where aggregate payments under the contract exceed the higher contractual threshold even if individual bills are below the single payment threshold.