Tds deduction on foodgrains

This query is : Resolved

Dolly Ahuja (Querist)
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07 August 2014 Is Transportation of foodgrains liable to TDS deduction?
1 of our client deals in payment to transporter which carries foodgrains. So are we liable to deduct TDS on the payment??

Please reply asap

Thanx in advance

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2014 No. TDS not required to be deducted from payments made to transporters if PAN is provided by them.

Dolly Ahuja

Dolly Ahuja (Querist)
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07 August 2014 Is this the same logic for foodgrains? and
Under which section or circular or notification.
Please confirm

Thanx

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2014 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 on or after October 01, 2009.

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