Tds on transporters

Hi Gurus,

As per sec 194c TDS on Transporters,The deductor should not deduct the TDS on payments made to transporters if the following conditions are satisfied :

1) If the Transporter had showed the pancard to the deductor.

2) The transporter should provide a declaration to the deductor ,that he doesnot own more than 10 vechicles at any time during the previous year.

Now my question is that ,should we show in the TDS return the payment made to the Transporters without deducting  TDS.(i.e Even the Transporter has provided the valid documents to the deductor)

Should we show in the TDS return amount paid to the transporters @ 0%.

 

Could anybody help me out ,in clarifying this issue.

With Regards

kalyana krishna

 

 

 

 

 

 

 

 

Replies (4)

Yes, such transactions shall be reported in the TDS return and code ‘T’ shall be selected for reason of non-deduction for transporter transaction.

Rule 31A(4)(vi) of the Income-tax Rules:

"The deductor at the time of preparing statements of tax deducted shall furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee."

I agree with Deepak Gupta

That's Right

Yes. You are required to disclose the transaction in your TDS Returns. We disclose all the transactions on which TDS liability arises including those transactions on which TDS is not deducted because it is not crossing the exemption limit as per the relevant sections. This information can then be used in preparing the Tax Audit Report

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