Tax Deduction at Source
This query is : Resolved
Guest
Guest
(Querist)
25 May 2009
Dear Sir
I got one Transporter bill in which along with Transportation charges Passenger And Goods Tax is charged. The Transporter is saying TDS will not be deducted on Passenger and Goods Tax. Is it right? Is there any cicular for this just like circular for TDS not to be deducted on Service Tax charged on Rent.
Regards
Vishal
I got one Transporter bill in which along with Transportation charges Passenger And Goods Tax is charged. The Transporter is saying TDS will not be deducted on Passenger and Goods Tax. Is it right? Is there any cicular for this just like circular for TDS not to be deducted on Service Tax charged on Rent.
Regards
Vishal
CA.BHARAT BHUSHAN
(Expert)
25 May 2009
I think till date there is no such circular.and for safer side you should deduct TDS on whole amount including Goods Tax.
taxindiaconnect
(Expert)
25 May 2009
Answer to your query lies in question no in circular no 715 dated 08.08.1995 in whoch the CBDT has clarified as following –
Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source
Thus following above clarification, the TDS is required to be deducted from tax part of the transporter bill.
Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source
Thus following above clarification, the TDS is required to be deducted from tax part of the transporter bill.
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