TDS on Transportation Cost

[CHITRA RAGURAM]

A sales invoice was raised and transportation cost was loaded in the bill. The buyer has deducted TDS on this transportation cost portion u/s. 194C @2%. Is it right ??? Please advice

AI Summary

Dispute Over TDS Deduction on Transport Costs: Buyer Deducted TDS at 2% Under Section 194C, Seller Challenges. A sales invoice included transportation costs, and the buyer deducted TDS on this portion at 2% under Section 194C. A respondent argued that the deduction was incorrect because the transportation service was provided to the seller, not the buyer, and thus the seller should deduct TDS if necessary. Additionally, if the transporter provides their PAN, TDS deduction may not be required. Another respondent mentioned that a declaration alongside the PAN might be needed for TDS exemption.