Tds deduction on transporter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2016
(1) A Transporter with valid PAN.
(2) But have more than 10 vehicles.

Deliver the material by above transporter in our company only one time in year 2015-2016 for RS. 4520 vide GR Dt 15/12/2015.

please tell me about TDS deduction with keeping in mind rule of under section 194C that is minumum transation in Year Rs. 75000/- and one bill of Rs. 30000/-

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
Follow

13 January 2016 No TDs as threshold limit applicable in this case also

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2016 TDS RETURN ME JO TRANSPORTER KI DETAIL JATI HAI USME SUBMIT KARNA compulsory HAI.KYA ?

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2016 ya keval un trasporter ki detail submit kanrni hai jo above limit of Rs. 75000/- in the hole year.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

27 July 2025 Great question! Here's how TDS on transporters works under **Section 194C**:

---

### Key points for TDS on transporters under Section 194C:

1. **Threshold Limits:**

* **No TDS deduction if total payment to transporter in a financial year is less than Rs. 75,000.**
* Also, if a single bill amount is less than Rs. 30,000, no TDS is required.

2. **If the transporter has a valid PAN, TDS is deducted @ 1%.**

3. **If transporter does not have PAN, TDS is deducted @ 20%.**

---

### In your case:

* Only **one delivery** was made in the entire year (FY 2015-16).
* Payment is Rs. 4,520.
* Since this is **less than Rs. 30,000 (single bill limit) and Rs. 75,000 (annual limit)**, **no TDS deduction is required**.

---

### About TDS Return filing:

* **Only details of those transporters on whom TDS is deducted need to be reported in TDS return (Form 26Q).**
* Transporters with payments below threshold (no TDS deducted) **do NOT need to be reported in TDS returns.**

---

### Summary:

| Criteria | Your Case | TDS Deduction Required? | Report in TDS Return? |
| ------------------------------- | --------- | ----------------------- | --------------------- |
| Single bill amount > Rs. 30,000 | Rs. 4,520 | No | No |
| Annual payment > Rs. 75,000 | Rs. 4,520 | No | No |
| Transporter PAN present | Yes | N/A | N/A |
| Transporter PAN absent | N/A | N/A | N/A |

---

**So, no TDS deduction or reporting is required for this transporter.**

---

If you want, I can help you draft an internal note or mail on this. Want me to do that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now