09 July 2021
We are registered dealer in GST, this month (July,21) we have purchasing some goods from Interstate registered dealer through Interstate Transporter, who (transporter) raised a Invoice for Rs. 34500.00 with out charging any GST . Now our question is 1) We will pay IGST under Reverse Charge Basis 2) If Transporter give us Declaration for Non- deduction of Tax at Source (TDS) under Section 194 C (6) of the Income tax Act, 1961with his Pan Copy, then is this case can we deducted TDS because new rule 206 AB start on 01/07/2021, if yeas then which rate will applicable.
09 July 2021
A transporter who owns up to 10 vehicles can provide a declaration to this effect along with PAN, in which case no tax to be deducted at source u/s 194C. Since no tax to be deducted at source, 206AB would not be relevant in this case I think.
09 July 2021
Section 206AB is an overriding section and it's applicability is considering all TDS sections except section 192, 192A, 194B, 194BB, 194LBC or 194N. Hence it is suggested to use the compliance check functionality enabled in the reporting portal to see whether the said transporter is a " Specified person" . If yes, deduct TDS as prescribed.
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