Calculator
TDS on Freight Calculator (Section 194C).
Estimate TDS on a freight payment under Section 194C, and see when a transporter’s 194C(6) declaration means no deduction.
How it is calculated
Section 194C applies to payments to contractors, including for carriage of goods: generally 1% for individuals and HUFs and 2% for others. Under Section 194C(6), no deduction is made on payments to a transporter who owns ten or fewer goods carriages at any time in the year and furnishes a declaration with PAN. Deduction thresholds also apply. Rates and thresholds can change; confirm with your CA before relying on this estimate. Read transport accounting.
Questions
What is the TDS rate on freight?
Generally 1% for individuals and HUFs and 2% for others under Section 194C, subject to thresholds; confirm current rates with your CA.
When is TDS not deducted on freight?
When the payee transporter owns ten or fewer goods carriages and furnishes a PAN declaration under Section 194C(6), or the payment is below the thresholds.
See it on your own data. SCM for Transporter runs the bilty, e-way bill, trips, billing and accounts in one system. Book a 30-minute working session with an engineer.