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)
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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 online

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

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### 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.**

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

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