TDS

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Purna Chandra Patra (Querist)
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26 December 2010 It is to understand that TDS on transporter is not applicable it it is provided with PAN.

Suppose ABC transport Agency engaged for goods transport and raised a bill of Rs,1,00,000/-( one lakh) and PAN is available in the name of the proprietor but not in the name of ABC Transport Agency. Will TDS is exempted for the Agency.

2. Is there any provision to deduct the TDS on transport charge raised on sales bills along with materials. for ex-

we have purchsed, say cement of 20,000/- and the bill is say 25,000/- including transport charge (20000+5000). So will it be possible to deduct TDS on rs. 5000/-

3. As per TDS chart 2010-11 availavle in most of sites, sec-194C -- payment to contractor, pay to advt., sub-contractor, payment to TRANSPORTER is 2% or 1%.

Again in NOTE-2, mentioned - payment made to TRANSPORTER, TDS is not required if PAN is provided by the Transporter.

So I am getting confused of the point-3 and the note-2 there of. PLEASE CLEAR IT.

Thanks

PC Patra

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 December 2010 1)ABC transport Agency engaged for goods transport and raised a bill of Rs,1,00,000/-( one lakh) and PAN is available in the name of the proprietor but not in the name of ABC Transport Agency TDS need not be deducted as Proprietor provides his PAN.

2)TDS is not deducted on purchase. If PAN not provided and threshold limit crossed then TDS will be deducted only on transport charges @ 20%

3) Rate of TDS u/s 194C--

Individual/HUF @1%
Other @2%
If PAN not provided 20%

For details regarding rates and threshold limit see below link---

https://www.caclubindia.com/forum/details.asp?mod_id=109491

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