TDS deduction on Transporters

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This query is : Resolved

joginder (Querist)

18 March 2010 hello friends,

In Financial bill 2009 20% TDS rate was prescribed in all cases, if PAN is not quoted by the deductee (including transporter) w.e.f. 01-04-2010.

I am confusing about this rule.

IN CASE OF PAYMENT TO TRANSPORTER (SUPPOSE IN A SINGLE PAYMENT) WE PAID ONLY RS. 5000/-.

I WANT TO KNOW WHETHER IN THIS CASE ALSO I HAVE TO TAKE PAN NO. FROM TRANSPORTER OR PAN NO QUOTATION IS REQUIRED ONLY IN CASE WHERE THE PAYMENT EXCEED ABOVE GIVEN CEILING LIMIT.

Vivek Angrish

Vivek Angrish (Expert)

18 March 2010 If you are paying only this much amount and you are sure that in whole financial year the payment will not be going to exceed the threshold limit then there is no need to have the PAN No. of the Transporter.

Sohil Ganeriwala

Sohil Ganeriwala (Expert)

18 March 2010 TDS deduction or the requirement of PAN No. arises only when the invoice amount exceeds Rs.20,000/- or if the amount exceeds Rs.50,000/- in the whole year.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

18 March 2010 YOU NEED NOT ASK FOR PAN OR DEDUCT TDS ON RS. 5000/-. BUT IF DURING THE FY THE AMOUNT GOES BEYOND THE THRESHOLD LIMIT YOU HAVE TO GET THEIR PAN CARD XEROX COPY CERTIFIED BY THEM AND IF THEY DONT HAVE PAN THEN YOU HAVE TO DEDUCT TDS @20% ON AGREEGATE AMOUNT.