194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2014 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.

I want to know in my business my transporter provided me the PAN ....So i not deducted the TDS.Should i need to submit that PAN in return......if not then what will be the fine.......
Kindly help me i am a new in business and stuck in that...please

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 March 2014 you dont have to submit the PAN to anyone. You need to mention the payments made to transporter in the TDS return and mention Flag T for reasons for non-deduction.

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