TDS deduction on payments to transporters
ela bhargava (student) (21 Points)
06 December 2016ela bhargava (student) (21 Points)
06 December 2016
Sandeep Dharar
(Business )
(18797 Points)
Replied 06 December 2016
If PAN is quoted by the transporters, then deduct TDS @ 1% or 2% as applicable, and if not quoted then deduct @ 20%. A declaration is required if the transporter is not owning more than 10 goods carriage at any time during the previous year, and the deductor needs to collect it along with copy of PAN of the transporter as per board circular no. 19/2015, dated 27/11/2015.
U may follow the following format:-
Declaration under section 194C(6) of the income tax act 1961
No................. (to be provided by payee) Date.................
From.............................(Name & Addree of the payee)
To..................................(Name & address of the payer)
The freight/transport charges amounting to Rs................ for transportation of goods by goods carriage having registration number.............................. may be paid or credited to my account without deduction of TDS u/s 194C, of the Income Tax Act 1961. I/We......................... in the capacity of.............................. hereby declare that I/We do not own more than 10 goods carriage and also did not own more than 10 goods carriage at any time during the period from 01/04/....... to ........... My PAN is................. I hereby enclose a self - attested photocopy of my PAN card.
Place............................ Signature of the person making declaration.....................................
Harsh Singhal
( )
(81 Points)
Replied 06 December 2016
Hey Ela, answer to your query is that TDS is to be deducted under section 194C if payment is made to transporters and no TDS has to be deducted if the number of good carriages owned by the concerned transporter is not more than 10 and also he furnishes a declaration for the same along with his PAN.
As far as declaration is concerned, there is no specific format for the same. You can take any format (which is available online) which fulfills the conditions of section 194C.
Take care !