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Wether to deduct tds on transportation charges ?? (Income Tax)

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This query is : Resolved



( Author )
06 July 2012


Respected Sir,

We would like to draw your honours kind attention on the fact that one of the our client is dealing in the business of Manufacturing of Brass Scrap.

Sir Query is that :

when our honour has purchased a Brass Scrap from the party & Credit Amount Whatever is Purchased amts.With Transportation Charges & after that he paid all amounts with transportation charges .

Sir, Our Question is that :

Wether our Client has to Deduct TDS on Transportation Charges which is Credited Erlier & paid then after ?

IF PAN Number is Provided by the party then Under Which Section is Liable to Deduct the TDS ( U/s. 194C Or any Other ) ?
?


Please give Response as early as possible

Its urgent ??

Thaking you,




A.M.Adhavan

( Expert )
06 July 2012

If you are having transport contract no need of deducting tds just obtain PAN from the transporter


CA Prashant Gupta

( Expert )
06 July 2012

first you paid amount to party not to transporter. so you don't need to deduct TDS. Moreover you have Transporter PAN also for safe side. As this freight for material inward then after getting PAN you don't need to deduct TDS. sec 194 C


CA PRAVEEN SINGH

( Expert )
07 July 2012

Payment to transporter :- NO TDS
PROVIDED PAN NO IS GIVEN
OTHERWISE DEDUCT TDS 20%


CA.Sourabh Sethia

( Expert )
07 July 2012

since you are not paying the Transportation charges directly to the transporter you are not liable to deduct TDS as you paying the amount to the party from whom you are purchasing
therefore the party is liable to deduct TDS
and if the Transporter gives PAN to party then no TDS is required
but if you are paying the Transport and the case is not of Re-imbursement then you are liable and you have to obtain PAN


kanhaiya kumar agarwal

( Expert )
07 July 2012

Dear Dinesh,

In your case deduction of TDS is not applicable as it is a case purchase which has only be accounted wrongly through Transportation Charges.

However, In case transportation charges are paid to a goods transport agency, TDS is required to be deducted at a higher rate of 20%, only in case transporter doesn't furnishes his PAN No. to the deductee. Otherwise, TDS is not required to be deducted on the same.


Ganeshbabu K

( Expert )
15 May 2013

TDS is not required to deduct on transportation charges provided transporter provided his valid pan card.

please not that there is a mandatory obligation that these details to be provided in tds returns..

you can get clear cut idea if you read my article in this regard..

http://www.caclubindia.com/articles/inclusion-of-transporters-details-in-tds-returns-are-mandatory-17543.asp


CA Prashant Gupta

( Expert )
15 May 2013

@ Ganeshbabu
please look the date when Q is asked July-12
why are you replying after one year?


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