TDS Applicability

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2010 Please Clarify the following points

1. Whether TDS needs to be recovered from the Transportion Bill even if PAN Copy is produced.

2. Transport is used to pick up & Drop the Employees from resident to Factory.

3. Transport vehicle is obtained from the owners of the vehicle & supplied to a Company. Whether TDS needs to be recovered from the owner of the vehicle even on submission of PAN.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

29 October 2010 This exemption of non-deduction of TDS ia available for goods carriage. So in this case TDS is applicable.

RANGA SRINIVAS

RANGA SRINIVAS (Expert)

30 October 2010 As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor. This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C. Applicability This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment. New returns for such information Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C. CBDT would be prescribing the format for such return and the methodology to file such return shortly. However it is expected to be one time activity for the Deductor to furnish these details after 31/03/2009, containing the information of all 6 Months.Department has not notified the new form till today(17.11.2009)

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