Tds

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sankar ponnan (Querist)
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28 July 2020 Sir
A proprietor gets the bill from a private limited company for availing the transport services by it on the basis of sub-contractor. While making payment, Can the proprietor deduct the tds on the payment to be made to the company if there is no TAN Number?
If yes, should deduct tds @ 2% on the name of the company
OR @1% on the director as he is the owner of trucks?
thanks in adv

CA KARAN SINGH

CA KARAN SINGH (Expert)
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28 July 2020 Yes, the proprietor is liable to deduct TDS, and TAN is compulsory. If he doesn't have TAN, then he has to apply for it.
The rate of Deduction will be 2%.
If the payment is made for personal purposes (i.e., services received were not used for business purposes) or bill amount is less than Rs. 30000 then he will not be required to deduct TDS.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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28 July 2020 Sorry, The Rate of TDS will be 1.50%, not 2%

sankar ponnan

sankar ponnan (Querist)
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29 July 2020
Kindly let me know the notification number for tds of 1.5% please because I have to show it with our directors.
And
Can the company ( as it is having the business of transport services) submit the TDS declaration form U/S.194C (6) of IT Act,1961 to Proprietorship for non-deduction of tds ?

guide me please
thanks in adv

CA KARAN SINGH

CA KARAN SINGH (Expert)
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29 July 2020 Please Refer the Press Release for reduced rate of TDS.https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/834/Press-Release-Reduction-in-TDS-TCS-Rates-dated-14-05-2020.pdf

CA KARAN SINGH

CA KARAN SINGH (Expert)
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29 July 2020 Yes, a company can give a declaration with its PAN for non deducting TDS provided the company owns not more than 10 goods carriage in the previous year.

sankar ponnan

sankar ponnan (Querist)
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29 July 2020 Sir
One More doubt please,
In case if the company has no trucks on its own name but Only the director of company is having more than 10 trucks, Can a company submit the tds declaration form?

CA KARAN SINGH

CA KARAN SINGH (Expert)
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29 July 2020 No, if the transporter company is in the possession of more than 10 trucks. it cannot take immunity u/s 194C (6).

sankar ponnan

sankar ponnan (Querist)
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29 July 2020 thank You very much sir

CA KARAN SINGH

CA KARAN SINGH (Expert)
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29 July 2020 You are welcome Sankar Ponnan.

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