On what amount TDS need to be deducted us 194 c in case freight payment where of Fuel is provided to truck provider.

[krupasindhu khandual]

We provide GTA service. Basically dealing with transportation of iron ore , coal and limestones. We hire truck from the public both from truck owner and truck provider. Most of the Truck providers/ owners are individual and don't raise invoice to us for freight charges. To provide diesel we have tied up with various fuel filling stations. The fuel stations issue bills to us and we paid to them. The freight charges is calculated as follows:

Say Rate is ₹ 2,000 per tonnage for a fixed route.

A 14 wheel truck can carry 30 tonn

Gross amount ₹2000*30= 60,000

Less: diesel supplied 20,000

____________

Freight amount payable 40,000

We transfer 40,000 to truck owner/ provider bank account net off tds.

Myquery is on whatamount we need to deduct tds on 60,000 or on 40,000 ??

[Ganeshan Kalyani]

In my vewi, TDS on ₹ 40,000/- should be deducted, as this the freight charges.

[TANAY GHILDIYAL]

As per provisions of Sec 194C when raising invoice mention the freight amount and diesel cost separately. Deduct TDS on the freight Amount.

Freight Charges = 60,000

Less:-Diesel Charges=20,000

Total Payable =40,000

In ur books of Account mention Freight and diesel separately.

Tanay Ghildiyal

9873938771

AI Summary

Clarification Sought on TDS Deduction for Freight Payments Under Section 194C When Diesel Costs Are Involved A discussion in a forum addresses the appropriate amount for TDS deduction under Section 194C for freight payments when fuel is provided to the truck provider. The scenario involves a company providing GTA services, hiring trucks without receiving invoices for freight charges. The freight amount is calculated by subtracting diesel costs from the gross amount. One participant suggests deducting TDS on the net freight amount of 40,000, while another advises separating freight and diesel costs on invoices and books, and deducting TDS solely on the freight amount of 40,000.