194c transport contractors

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CA Yash Marda (Querist)
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25 March 2012 1. i AM MAKING PAYMENT TO A TRANSPORTER. LETS SAY I M PAYING 1,00,000 + 10,000 AS SERVICE TAX. MY QUERIES ARE .

1. WILL TDS BE DEDUCTED ON 110000 OR 1,00,000
2. I ALSO LEARNT THAT IN CASE OF TRANSPORTER TDS IS NOT TO BE DEDUCTED. IS IS TRUE ? IF YES WHAT IS THE FORM THAT HAS TO BE FURNISHED OR FORMALITIES REUIRED ??/

THANKING YOU IN ADVANCE

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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25 March 2012 1. TDS if apply will be on entire sum incl service tax
2. section 194C (6) provides that no tax shall be deducted at source in case of payment for plying, hiring or leasing goods carriages provided that the contractor provides his Permanent Account Number.
Section 194C(7) further provided that the “payer” mentioned in sub-section (6) shall furnish to the prescribed Income Tax Authority or the person authorised by it such particulars as may be prescribed.
As per rule 31A(4)(vi), 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.
CA MANOJ GUPTA
JODHPUR
09828510543

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