Tds

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irfan

irfan (Querist)
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10 June 2015 is TDS deductible on transportation charges

Rupesh Jain

Rupesh Jain (Expert)
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10 June 2015 yes, form 1.6.2015 section is amended for large transporter. for whom have upto 10 vehicle for required to take declaration and PAN then no tds required.

other than above tds will be deducted.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 June 2015 Payments to transporters attract Section 194C. Earlier if transporter provided their PAN, TDS was not required to be deducted.

Now there is an amendment in the provisions of section 194C of the Act to expressly provide that the relaxation from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e. a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

This amendment is applicable from June 1, 2015.

irfan

irfan (Querist)
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10 June 2015 if transporter provide bill below Rs.15000
then is it required to deduct TDS

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 June 2015 TDS to be deducted if threshold limit is crossed.

Threshold limit:

Single Bill/Payment Rs 30000/-
Annual Total Rs 75000/-

Rate of TDS:

Individual/HUF @1%
Others @ 2%
No PAN @20%.

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