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

AI Summary

TDS Not Required for Single Payment Under Rs. 20,000; Deduct if Annual Total Exceeds Rs. 50,000, per Section 194C. A query was raised about the applicability of Tax Deducted at Source (TDS) on clearing and forwarding charges, specifically whether TDS is required if a single payment exceeds Rs. 20,000 or if the annual contract value exceeds Rs. 50,000. The response clarified that TDS is not required for a single bill or payment under Rs. 20,000. However, if the total payment for multiple bills exceeds Rs. 50,000, TDS must be deducted, as per Section 194C, sub-section (3), clause (i) of the Income Tax Act.