TDS deduct on warehouse insurance charges is applicable or not

[MUTHUKUMARAN K]

we got private bonded warehouse invoice. They collect Cargo storage Charges and Insurance Charges.

we dedect 10% TDS on both Storage and Insurance Charges its correct or not.

with regards

K.Muthu Kumaran

 

AI Summary

TDS at 10% under Section 194-I applies to warehouse rent including cargo storage and composite insurance charges TDS at 10% under Section 194-I is applicable on warehouse rent, including cargo storage charges treated as rent. Insurance charges included in the same invoice may be considered part of the composite rent if charged by the warehouse owner, thus attracting TDS under Section 194-I. However, if insurance is a pass-through cost separately charged, TDS is not applicable on that portion. Cargo storage services alone do not qualify as professional or technical services under Section 194J, and typically attract TDS under Section 194C at 1% or 2%. Clarification from Circular No. 4/2008 supports the applicability of TDS on rental income, which includes composite charges forming part of rent.