Applicability of tds on transporter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2015 Dear sir
i am going to pay RS. 60000 to transporter. please tell me whether tds has to be made or not if yes how much and what's procedure for applicability of tds on transporter plz explain in details....

thanks in advance

Rupesh Jain

Rupesh Jain (Expert)
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05 June 2015 from 1.6.2015 you have to deduct tds on payment made to transporter limit is rs.30000/- single and rs75000/- in a year.

if you are making payment single bll above rs. 30000/- then tds will be deductible.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 June 2015 Payments to transporters attract Section 194C. Earlier if transporter provided their PAN, TDS was not required to be deducted.

Now there is an amendment in the provisions of section 194C of the Act to expressly provide that the relaxation from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e. a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

This amendment is applicable from June 1, 2015.

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