LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds on freight

Geetha (Aricle) (103 Points)

22 December 2012

If freight charges paid is less than 30000 and in agregate also its less than 75000 will tds be deductable??? and if he has pan number then should n't be tds deductable on any amount of freight charges ?? plz reply

what is if pan number not there... should tds deducted on less than 30000 amount also?

Reply
Follow
Share

10 Replies

Hitesh Kaila (TAX CONSULTANT) (270 Points)
Replied 22 December 2012

PAN No. is mention on Lorry Receipt so, not deduct TDS for any amount of Freight charges

(Guest)

TDS is not deducted on frieght charges if PAN is available, however in case of non-availability of PAN, then TDS @ 20% will be deducted.

Amit (Student) (75 Points)
Replied 23 December 2012

Dear Friends,

Can we take the entry on the basic of Lorry receipts Or should be booked on the basis of freight bill.

Geetha (Aricle) (103 Points)
Replied 24 December 2012

if freight charges doesnt exceed 35000 per bill and he doesnt have pan no. then tds to be deducted or not... pls rply

Gunjan Jain (CA) (127 Points)
Replied 24 December 2012

Hi friends

TDS will not be deducted if single bill is less than Rs. 30000 and aggregate of Rs. 75000 in a year. if the limit exceeds then PAN require otherwise TDS @ 20% will be deducted.

In law it is clearly mentioned:

No TDS is to be made where such sum is credited to the account of or paid to the contractor in the course of business of plying, hiring or leasing of goods carriages if the PAN is furnished by the contractor.

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 24 December 2012

As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.

This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C. As per your query, if the transpoter fails to provide PAN, then he is subjected to TDS at even higher rate.