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Transporter details in TDS return FAQ....

"PROUD TO BE AN INDIAN"

FAQ on filing and submission of TDS Return for Payment to Transporter Having Permanent Account Number (PAN)

 

 

Since the time Government has notified vide 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.

Now here the person who pays transport Charges were facing the dilemma whether they are required to file TDS return in respect of Transport charges Paid to the Transporter who furnished there PAN.

We have summarised below few frequently asked  questions and answers which arise in respect of deduction of TDS on transport Charges and in respect of TDS return filing requirement when no TDS been deducted on Transport Charges Paid to the Transporters who have furnished their PAN

 

Question 1- What is the rate of TDS on Transport Charges if PAN is provided?

Answer:-

Rate of TDS shall be if PAN is not provided from 1.10.2009 to 31.3.2010

1. 1% if the payee is individual or HUF.
2. 2% otherwise

Rate of TDS  After 31.03.2010 if PAN is not provided

After 31.3.2010 the rate shall be 20%.

 

Question 2- What will be the rate of TDS on Transport Charges if PAN is provided on or after 01.10.2009?

W.e.f. 01.10.2009 TDS will be deducted at NIL rate if Transporter provides PAN.

 

Question 3- Do Assessee need to mention details of Transport Charges Paid where Transporters provided PAN and no TDS been deducted?

Yes. Assessee need to mention the same in TDS return. Government has recently release Return Preparation Utility (RPU version 2.2) and FVU version 3.0 which contains the field in respect of Transport charges where TDS been deducted at nil rate.

Transporter transaction where no deduction has been carried to marked separately as “T”. Flag “T” to be mentioned in the field for lower or no deduction at deductee detail.

 

Question 4- During Last Quarter I Paid only Transport charges to the transporter on which no TDS been deducted since the transporter has provided the PAN. Do I still need to file TDS return? 

Yes You need to file TDS return as department is also interested in knowing that how much you paid to the transporter who furnished his PAN to you. 

 

Question 5 - How to submit E-TDS return in respect of Payment to transporters when Assessee has not deducted TDS as Transporter has provided PAN?

Following are the additional steps to file E-TDS return in respect of Transport Charges Paid to transporters without deduction of TDS:-

·        In respect of TDS on transport charges where rate of deduction is nil , Assessee have to leave the following fields blank-

o       Cheque No

o       BSR code

o       Transfer Voucher /Challan Serial No.  

o       Date of deduction in Annexure-I

·        In the Column of “Date on which tax deposited" we may write last date of quarter of which we are filing the TDS return.

·         Section Code will be 94C and other columns will be entered as Zero (0). 

·         Select "T" in the column "Reason for of Non-Deduction or lower deduction of Tax of the Annexure-1.


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"PROUD TO BE AN INDIAN"

Key features of FVU 3.0 applicable for e-TDS/TCS statements (regular and correction) pertaining to F.Y. 2010-11 onwards are: 

·         Allowed to validate statement (regular and correction) pertaining to FY 2010-11 and onwards only.

·         Mandatory to quote valid PAN in case TDS is not at higher rate

·         Valid PAN to be quoted for Lower/No deduction of TDS.

·         No value to be quoted in PAN reference no. field of deductee details

·         For TDS/TCS deposited by book entry, 7 digit number generated by TIN for accepted Form 24G statement to quoted in BSR code field. This value will be provided by the Accounts Officer to the deductor.

·         For TDS/TCS deposited by book entry, 5 digit number generated by TIN for DDO record of accepted Form 24G statement will be quoted in Transfer voucher field. This value will be provided by the Accounts Officer to the deductor.

·         Transporter transaction where no deduction has been carried to marked separately as “T”. Flag “T” to be mentioned in the field for lower or no deduction at deductee detail.

·         Remarks for lower/no/higher deduction need to be populated irrespective of deductee mode (Add/Update/Delete) in case of correction statement.

·         Field for mobile no. of responsible person has been added.

·         Any one of the contact details of deductor/collector is mandatory:

o        Deductor/collector telephone no. along with STD code

o        Responsible person telephone no. along with STD code

o        Mobile no. responsible person

·         Mandatory to quote e-mail id of deductor/collector or responsible person.

·         For records marked with higher rate only below mentioned fields can be updated:

o        PAN

o        Amount of payment

o        Date of  payment

·         PAN compliance validation is discontinued for Form no. 24Q (95%) and 26Q (85%).

·         Further for validating e-TDS/TCS statement for FY 2010-11 and onwards refer the table below:

 

FVU version of  e-TDS/TCS Regular statement  submitted

FVU version applicable for e-TDS/TCS Correction statement

FVU version 2.128

FVU version 3.0

FVU version 3.0

FVU version 3.0

 

Key features of FVU 2.129 applicable for e-TDS/TCS statements (regular and correction) up to F.Y. 2009-10 are:

 

·         Validate statement (regular and correction) only upto FY 2009-10

·         No changes in the validations for e-TDS/TCS statements upto FY 2009-10 i.e., validation of FVU version 2.128.

·         Further for validating e-TDS/TCS statement upto FY 2009-10 refer the table below:

 

FVU version of  e-TDS/TCS Regular statement submitted

FVU version applicable for e-TDS/TCS Correction statement

FVU version 2.126

FVU version 2.129

FVU version 2.128

FVU version 2.129

FVU version 2.129

FVU version 2.129

 


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"PROUD TO BE AN INDIAN"

 

NSDL has released new RPU 2.2 for e-TDS/TCS return preparation as well as correction statements. The key feature of new RPU 2.2 are as follows.

 

 

·        Preparation of  quarterly e-TDS/TCS statements (regular and correction) pertaining to FY 2010-11

 

 

·        Preparation correction statement using consolidated TDS/TCS statement (provided by TIN) pertaining to FY 2010-11

 

 

·        Select flag “C” in the column “Reason for lower or non deduction of tax” for tax deducted at higher rate

 

 

·        Transporter transaction where no deduction has been carried to marked separately as “T”. Flag “T” to be mentioned in the field for lower or no deduction at deductee detail.

 

 

·        Any one of the contact details of deductor/collector is mandatory:

o       Deductor/Collector telephone no. along with STD code

o       Responsible per son telephone no. along with STD code

o       Mobile no. of responsible person

·        Mandatory to quote e-mail id of deductor/collector or responsible person.


 
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Thanks a lotttttttttttttttttttttttttt

 
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Thank you sir.

 
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Nice post. Thanks for sharing.

 
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Thanks a lot

Harendra Kumar

Pune

 
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Article Assisstant


Thanks a Lottt......

 
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article(CA FINAL)


THANKS A LOT SIR

 
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Thanks Sir & Continue to share with us your kind knowledge

 
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