Clarification of Section 194 C


This query is : Resolved 

30 September 2009 from 01 Oct onwards As per section 194 C : If the Transport contractors engaged in the business of plying, hiring or leasing goods carriages -No TDS would be deducted from thier Bill.

As we are a tour operator & hire tranport from our transporter for the entire tour of our forign clients, in that case will we deduct TDS from our transporter bill or the captioned amendment would be applicable.

Please clarify in detail.
Thanks in advance

30 September 2009 As mentioned by you, the said exemption is applicable in respect of goods carriage.

Further, you hire vehicles for tour of foreign clients.

Since tourists are not not goods, in my view, the said exemption is not applicable.

You need to deduct TDS.

30 September 2009 Yes Logically correct

Thanks a ton


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