TDS is applicable for Warehouse Cargo Insurance Charges or not

[MUTHUKUMARAN K]

We got private bonded warehouse tax invoice with collect Storage Charges and Warehouse Insurance Charges in single invoice. TDS percentage is what ? and TDS deduct both charges ot not?

with regards

K.Muthu Kumaran

AI Summary

TDS applies on warehouse storage charges under Section 194C; combined invoices may require TDS on total amount TDS is applicable on warehouse storage charges under Section 194C at 2% for companies and 1% for individuals/HUFs if the invoice exceeds the threshold. Insurance charges paid directly to an insurance company generally do not attract TDS. However, if insurance charges are part of a composite invoice not separately paid to an insurer, TDS may apply under Section 194C. When storage and insurance charges are combined in a single invoice without bifurcation, it is safer to deduct TDS on the entire amount to avoid disputes. Seeking professional tax advice and requesting invoice breakup is recommended for clarity and proper documentation.