CA Arpita Tulsyan
There were certain amendments, which were made in Section 194C(6) by Finance Bill, 2009.
Amendment made at that time was as follows:
The Small Transport Operators as defined in Section 44AE of Income Tax Act, 1961 (not owing more than 10 goods carriages at any time during the year) were not liable to TDS u/s 194C if they furnish their PAN.
The intent of the amendment was to reduce the compliance burden on the small transport operators ONLY & NOT ALL the Transporters.
But the language of the Section/Amendment did not convey the correct intention & consequently, all transporters irrespective of Section 44AE, claimed the benefit by furnishing their PAN.
Accordingly to convey the correct meaning of the Section, it was again Amended w.e.f. 01st June 2015 which clarified that:
The Transporters who CUMULATIVELY satisfy the below 3 conditions can claim the exemption of Section 194C(6):
- Who owns ten or less goods carriages at any time during the previous year
- Who is engaged in the business of plying, hiring or leasing goods carriages
- Who has furnished a declaration to this effect along with his PAN
Hence, the Conclusion is:
Only the Transporters who satisfy the above mentioned 3 Conditions cumulatively are exempted from TDS u/s. 194C & the transporters who do not satisfy the above Conditions cumulatively are still liable to TDS u/s.194C
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