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.

My query is on what amount 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

TDS under contract transport rules: deduct on the freight component, excluding separately recorded fuel reimbursements.
Withholding tax for contract transport services must be applied to the freight component only; diesel supplied and paid separately should be recorded and shown apart from freight, and TDS deducted on the freight amount (the balance payable after accounting for diesel) with invoices and books reflecting freight and diesel separately.