S-194c clause (6)
Querist : Anonymous
whreather to deduct tax on freight or hire charges? u/s 194 c (6)
ii) Hire charges ,for 194C, means charges paid for hiring the vehicle without control and possession of the vehicle.
If copy of PAN card is given by the transporter, no need to deduct tax.
Querist : Anonymous
1.so i can understand that on fright tds is completely not appliacble?
2.on hire charges paid in the course of plying,hiring & lrasing business ,i stds to be deduct?
Querist : Anonymous
1. Freight vs. Hire Charges
Freight:
Charges paid for transporting goods where the transporter uses their own vehicle or under a contract of carriage. Here, the transporter exercises control and possession over the vehicle.
Hire Charges:
Charges paid for hiring or leasing a vehicle (truck, tempo, etc.) without transferring control or possession to the hirer. The vehicle is provided for the hirer’s use, but the vehicle owner still controls it.
2. TDS Applicability under Section 194C(6)
TDS is deductible on freight charges (transportation of goods services) paid to a transporter if PAN is not provided (except if transporter provides PAN, then no TDS).
TDS is NOT deductible on hire charges paid for hiring vehicles (since this is not treated as transportation service under 194C(6)).
3. Transporter vs. Plying, Hiring & Leasing
Transporter:
Someone engaged in the business of transporting goods (they operate their own vehicles, carry goods for others, etc.).
Plying, Hiring & Leasing:
Means renting or leasing out vehicles to others without providing transportation service per se.
The key distinction is possession & control of the vehicle during transportation.
Summary Table
Payment Type Vehicle Control Is TDS Deductible u/s 194C(6)?
Freight (transportation charges) Transporter controls vehicle Yes, if no PAN
Hire charges (leasing/hiring vehicle) Hirer controls vehicle No TDS
If you pay freight charges to a transporter without PAN, you must deduct TDS under 194C(6).
If you pay hire charges for leased vehicles, no TDS is deducted under this section.
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