Check whether Section 194C TDS applies to a transporter payment, and estimate the GST reverse-charge (RCM) on the same freight bill.
TDS applies once the yearly aggregate exceeds ₹1,00,000.
Section 194C · GTA Reverse Charge
₹2,000
Estimate only — confirm the transporter's declaration status with your CA before deducting TDS.
Under Section 194C of the Income Tax Act, a business paying a transporter must deduct TDS — 1% for an individual/HUF transporter, 2% otherwise — once a single payment crosses ₹30,000 or the total paid to that transporter in the year crosses ₹1,00,000. A small transporter who owns 10 or fewer goods carriages and furnishes their PAN with a declaration is exempt from this TDS entirely under Section 194C(6).
Separately, under GST, if the Goods Transport Agency (GTA) hasn't opted to pay tax under forward charge, the recipient of the service (you) must pay GST under reverse charge at 5% — with no input tax credit available to the transporter, though you can typically claim ITC on the amount you pay.
This is an estimate for planning purposes — always confirm the transporter's declaration status and exact treatment with your Chartered Accountant.
Dispatching by truck often?
Transport details, truck load checks, and GST reporting all live on the same invoice — no separate spreadsheet needed.
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