TDS from Truck owners

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This query is : Resolved

CA. O.P. Agarwalla (Querist)

27 December 2007 One of my client is doing carriage contract of a Department. As per Contract orders, he is responsible (including insurance) for proper transhipment of goods from one station to another. Rate is fixed case to case, some time on weight basis and some time on numbers basis.
Now, in order to execute the contract he enters in to contract with truck owners and use such trucks in carrying goods (Trucks are used only for carriage of goods from and up to the destination as per contract with truck owners). Loading unloading charges are always paid by my assessee.
My question is if my assessee is liable for TDS, under which section he should deduct the same:-
194C (i)
194C(ii)
194I
Decision of Bombay high court in relation to ship may kindly be considered before giving the reply.

CA. RAMESH KUMAR

CA. RAMESH KUMAR (Expert)

28 December 2007 In my opinion ur cliet is liable to deduct TDS under Section 194c(2) i.e. for sub-contractors.
because client is using the services of truck owners(sub=contractors) to execute the work undertaken by him from the department and as per Explanation III (c) to Section 194C Work includes -
carriage of goods and passengers by any mode of transport other than by railways.

other views are also welcomed.

Guest

Guest (Expert)

16 January 2011 Yes, I agree with the view of Mr. Ramesh.

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