Sec194c clarification

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2014 hello guys, i am a bit confuse and i need a clarification on this matter.

• According to work definition in sec194 C it includes carriage of passenger by mode other than railway, and further it is said to not to deduct tds for hiring of transport for the purpose of goods only when PAN no. is made available by the transporter. Passenger is not mentioned here in this case. So does It mean that we need to deduct TDS when payment is made to transporter for carrying passenger ?

For example a employer hire a bus transporter to take his employees from one factory to another factory, and invoice amounting 32000 then do he need to deduct TDS on Rs. 32000 or should he just take PAN no. from the transporter?
thanks in advance ..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 August 2014 He has to deduct tax on Rs. 32,000.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

18 August 2014 TDS provisions applies as a corollary to section 194C(6)of the Income tax Act,1961.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2014 So MR. sitharaman ,it means hiring of transporter for carriage of passenger is a work contract and they are not exempted from TDS provision as in case of transporter for goods caarriage when they made avaailable their PAN no.
Plz make me correct if i m wrong.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 August 2014 Only goods carriage is exempted. Your above observation is wright.

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