RE:TDS
This query is : Resolved
22 January 2010
we are C&F agent of petroleum company.we hire transporters to carry goods of petroleum company.we have made payment of RS 60000 to a single transporter in this financial year.i want to know whether we have to deduct tds on RS 10000 or whole amount of RS 60000.
22 January 2010
You have to deduct on whole amount of Rs.60,000/-
22 January 2010
WE HAVE NOT MADE SINGLE PYT TO TRANSPORTER.WE HAVE MADE MONTHLY PAYMENTS OF RS 15000.WILL TDS WILL STILL BE DUCTED ON WHOLE AMOUNT OF RS 60000
20 July 2025
Got it! You are a C&F agent of a petroleum company, and you hire transporters to carry goods. In the current financial year, you have paid a total of ₹60,000 to a single transporter, but these payments were made monthly in installments of ₹15,000 each. You want to know whether TDS (Tax Deducted at Source) must be deducted on just ₹10,000 or on the entire ₹60,000, given that no single payment exceeded ₹10,000.
Explanation:
TDS on transporters is typically governed under Section 194C of the Income Tax Act (payment to contractors and transporters).
According to Section 194C, TDS must be deducted if the sum paid or likely to be paid during the financial year exceeds ₹30,000 (in some cases ₹1,00,000, but that is for other contractors). For transporters, the limit is ₹30,000.
Threshold for single payment: There is a threshold of ₹10,000 for a single payment to a transporter. If any single payment exceeds ₹10,000, TDS must be deducted.
However, if payments are split into smaller amounts intentionally to avoid TDS, then tax authorities may still treat the total amount as a single contract and require TDS on the entire amount.
In your case:
You have paid ₹60,000 to a single transporter during the financial year.
Each monthly payment was ₹15,000, which is more than ₹10,000 per payment.
Since the single payment exceeds ₹10,000, you are required to deduct TDS on each payment at the applicable rate.
So, you must deduct TDS on the entire amount of ₹60,000, i.e., TDS on each ₹15,000 payment.
Summary:
TDS should not be deducted only on ₹10,000.
Since each payment is ₹15,000 (which is above ₹10,000), TDS is applicable on each payment.
The total amount paid in the year is ₹60,000, so TDS should be deducted on the entire amount.
Explanation:
TDS on transporters is typically governed under Section 194C of the Income Tax Act (payment to contractors and transporters).
According to Section 194C, TDS must be deducted if the sum paid or likely to be paid during the financial year exceeds ₹30,000 (in some cases ₹1,00,000, but that is for other contractors). For transporters, the limit is ₹30,000.
Threshold for single payment: There is a threshold of ₹10,000 for a single payment to a transporter. If any single payment exceeds ₹10,000, TDS must be deducted.
However, if payments are split into smaller amounts intentionally to avoid TDS, then tax authorities may still treat the total amount as a single contract and require TDS on the entire amount.
In your case:
You have paid ₹60,000 to a single transporter during the financial year.
Each monthly payment was ₹15,000, which is more than ₹10,000 per payment.
Since the single payment exceeds ₹10,000, you are required to deduct TDS on each payment at the applicable rate.
So, you must deduct TDS on the entire amount of ₹60,000, i.e., TDS on each ₹15,000 payment.
Summary:
TDS should not be deducted only on ₹10,000.
Since each payment is ₹15,000 (which is above ₹10,000), TDS is applicable on each payment.
The total amount paid in the year is ₹60,000, so TDS should be deducted on the entire amount.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
