Sorabh Gupta
Manager ( Taxation )
[ Scorecard : 872]
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Posted On 12 October 2009 at 10:32
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Dear All
As you all know the rate of TDS u/s 194C has been changed ie. 1% on HUF/Indl & 2% on company. And same is the case of transporter if transporter does not provide the PAN NO. Can any body tell me that what is the definition of "TRANSPORTER" for this purpose .
In other words, IS IT include C&F Charges , Loading & unloading , Payment of custom duty, stamp duty, N form, agency comission, Octroi, container & warehouse ch. etc ?????
PLEASE GIVE YOUR VALUABLE VIEWS IN DETAILS..........
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mohit mehta
article
[ Scorecard : 87]
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Posted On 12 October 2009 at 11:00
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yes you are absolutely right The Finance Budget 2009 presented on 06.07.2009 has made in the changes in Section 194C
now if the transporter provides his PAN no tds is to be deducted on payments made to him, in case if he does not provide his PAN then TDS is to be deducted at 1% for Ind/HUF and 2% for Firm/ Company.
Now as regards the definition of Tranporter it means a person engaged in plying, hiring or leasing of trucks and does not include payment for other transportation means used.
Regards
Mohit
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Sorabh Gupta
Manager ( Taxation )
[ Scorecard : 872]
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Posted On 12 October 2009 at 11:03
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Dear Mohit
Thanks for your views But generally if we make contract with transporter then it is inclusive of C&F OR loading & unloading..................?????????????????
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sivaram
Asst Mgr-Finance
[ Scorecard : 4902]
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Posted On 12 October 2009 at 11:28
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Contract with the Transporter alone is covered in this category and not the contract with C&F who incurs the transport charges and gets reimbursed .sorry sir I am not an expert still placed my views on the same
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Sorabh Gupta
Manager ( Taxation )
[ Scorecard : 872]
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Posted On 12 October 2009 at 11:32
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Sivarama
It is appreciable that even you can try to answer................But dear still it is in bucket of confusion. I need some more views from you people.............
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mohit mehta
article
[ Scorecard : 87]
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Posted On 13 October 2009 at 16:38
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Dear Sourabh
With due regards, while interpretating law we have to be very specific unless the law itself generalise its application. This exemption is only for transportation contract and not any multiple contract entered along with, so if you are availing any other service along with a general transportation contract then you are left with only two option
1. Either ask your vendor to raise separate bills for the transportation contract and other services
2. Or deduct TDS at 2% / 1%
same procedure is opted under service tax where a covered and un covered service is obtained or rendered
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PRAVEEN KUMAR
MBA (Finance) B.Com.(P)
[ Scorecard : 3332]
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Posted On 24 October 2009 at 18:29
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Hi Sorabh,
As section 194C Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009 which provided vide subsection 6 that tax shall not be deducted in case of plying,hiring or leasing of goods carriage if person who is paid for such services furnishes PAN to person paying sums. Read the exact wordings below
(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
What is Goods carriage?
Clause (14) and clause (16) of section 2 of the Motor Vehicles Act, 1988, define “goods carriage” means any motor vehicle constructed or adopted for use solely for the carriage of goods, or any motor vehicle not so constructed or adopted when used for the carriage of goods;’
Conclusion
Therefore, it becomes clear that only in case of Goods Carriage plying or leasing or hiring, TDS may not be applied if the contractor of gooods carriage provides payer his/her PAN. Other transporters are still covered u/s 194C.
In other words, loading unloading or transportation of employees are not covered under subsection 6 which exempts certain payments from TDS levy.
However, I feel if the loading and unloading is made part of work of Goods Carraige, consolidated payments i.e payment for goods carriage as well as loading unloading shall also be covered u/s sub-section 6 of section 194C and TDS may not happen on those payments.
Originally posted by :Sorabh Gupta
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Dear All
As you all know the rate of TDS u/s 194C has been changed ie. 1% on HUF/Indl & 2% on company. And same is the case of transporter if transporter does not provide the PAN NO. Can any body tell me that what is the definition of "TRANSPORTER" for this purpose .
In other words, IS IT include C&F Charges , Loading & unloading , Payment of custom duty, stamp duty, N form, agency comission, Octroi, container & warehouse ch. etc ?????
PLEASE GIVE YOUR VALUABLE VIEWS IN DETAILS..........
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aruna
EXECUTIVE FINANCE
[ Scorecard : 24]
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Posted On 03 November 2009 at 11:51
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WHAT IS THE DEFINITION OF TRANSPORTER
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aruna
EXECUTIVE FINANCE
[ Scorecard : 24]
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Posted On 03 November 2009 at 11:57
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CAN ANYBODY PROVIDE ME THE DETAILS OF DEFINITION OF TRANSPORTER
THANKING YOU
ARUNA
C.A-IRCTC-EXECUTIVE FINANCE
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Sorabh Gupta
Manager ( Taxation )
[ Scorecard : 872]
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Posted On 03 November 2009 at 12:02
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Aruna
As per income tax act there is no such specific definition of transporter ........But as i presume that you just asking due to change of provision of TDS. So can you telll us the exact issue so that we can reply in such manner.........
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