Regarding sec 194c (6)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2015 sir,
Payment made by person who is in the business of plying ,hiring and leasing ggods carriages to contractor are exempt from the perview of TDS if contractor furnishes his PAN NO. to deductor.But the payment made to persons who are in such business as said above are not exempt u/s 194C(6).
Is this statement correct?Please explain

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 March 2015 No. This statement is not correct.

It says that No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to a contractor who is in business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.

So if you are making payment to a person who is not in business of plying, hiring or leasing goods carriages, you are required to deduct TDS.

It is not about payment made by person in business of plying, hiring and leasing goods carriages but about payment made to a person in business of plying, hiring and leasing goods carriages.

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