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Record TDS on Transport Expenses in TallyPrime

You can record transport expenses with or without TDS based on the transporter details and the applicable conditions under Section 194C.

Under Section 194C:

• TDS is deducted at 1% for Individuals/HUFs owning more than 10 goods carriages.
• TDS is deducted at 2% for other payees owning more than 10 goods carriages.
• No TDS is deducted when the transporter does not own more than 10 goods carriages at any time during the previous financial year and has furnished a declaration along with a valid PAN.
• TDS is deducted at 20% when the party does not have a valid PAN.

Record TDS on Transport Expenses

When TDS is applicable to the transporter, record the transport expense and deduct TDS in the same Journal voucher.

In the Journal voucher:

1. Debit the transport expense ledger and enter the amount.
2. Credit the party ledger.
   The amount appears automatically after TDS deduction.
3. In Bill-wise Details, enter the required details, and press Ctrl+A to save.
4. Credit the TDS ledger.
   The TDS amount appears automatically.
   
5. Press Ctrl+A to save the voucher.

Record Transport Expenses without TDS

When the transporter meets the conditions for non-deduction of TDS, record the transport expense without deducting TDS.

In the Journal voucher:

1. Debit the transport expense ledger and enter the amount.
2. Credit the party ledger.
3. The amount appears automatically.
4. In Bill-wise Details, enter the required details, and press Ctrl+A to save.
   
5. Press Ctrl+A to save the voucher.

No TDS is applicable when the transporter does not own more than 10 goods carriages at any time during the previous financial year and has furnished a declaration along with a valid PAN.