Sec.194C
This query is : Resolved
CA Jayesh Shah
(Querist)
08 December 2010
Their is provision under section 194C of Income tax which says that "No TDS has to be deducted in case of Transporter if they provide the PAN Number."
I have one doubt on it. The question is on the fact of "To pay Builty"
Their is three party.
1st is the Owner of Vehicle.
2nd is the Transporter (who is providing truck from owner of vehicle to company only on commission basis)
3rd one is Driver of vehicle.
Company has to ask for the PAN number of which party, whether of Contractor or Motor owner or Driver? In the following situation
1) Company is making payment of freight in cash to driver directly.
2) Company is making payment of freight via Cheque.
Please give some suggetions.
I have one doubt on it. The question is on the fact of "To pay Builty"
Their is three party.
1st is the Owner of Vehicle.
2nd is the Transporter (who is providing truck from owner of vehicle to company only on commission basis)
3rd one is Driver of vehicle.
Company has to ask for the PAN number of which party, whether of Contractor or Motor owner or Driver? In the following situation
1) Company is making payment of freight in cash to driver directly.
2) Company is making payment of freight via Cheque.
Please give some suggetions.
Vishal Kakkad
(Expert)
08 December 2010
1) In case of 'to pay builty' is having PAN of the transporter(commission agent of truck owner/driver) provides regular kind of builty including clarification about applicablity of service tax.
The contract take place between such transporter and company and PAN No. of such transporter to be obtained
Drivers collecting payment are collecting money on behalf of such transporter.
2) In case no special builty are provided or the builty are clearly mentioning that they are issued being commission agent of Truck owner/Driver in that case PAN of driver to be otained.(as it will be practically difficult to have owner details).
The contract take place between such transporter and company and PAN No. of such transporter to be obtained
Drivers collecting payment are collecting money on behalf of such transporter.
2) In case no special builty are provided or the builty are clearly mentioning that they are issued being commission agent of Truck owner/Driver in that case PAN of driver to be otained.(as it will be practically difficult to have owner details).
CA Jayesh Shah
(Querist)
08 December 2010
Dear sir, I agree with your answer 1, but in second situation It is not logical to collect the PAN of Driver.
Sir what will be situation if, Transporter is saying that make the payment in favour of Truck owner.
Sir what will be situation if, Transporter is saying that make the payment in favour of Truck owner.
taxindiaconnect
(Expert)
08 December 2010
In both the situation, the PAN of the party om whose behlaf the payament is being collected has to provide the PAN, that may be either truck onwer or transport agency. but certainly not the truck driver, if he is not the owner of the vehicle.
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