Tds if no pan u/s 94c
This query is : Resolved
18 August 2014
If we pay amount to any contractor under below of exemption limit.. eg 30000/- per payment or 75000.00 p.a to contractor U/s 94C
If Contractor fail to provide PAN copy is TDS 20% deductible in case if payment exceed the exemption limit or from the first bill.
Example :- if we pay to a contractor only Rs.15000/- and he fail to give PAN card copy , should we deduct TDS 20% or No need to deduction because amount is under the exemption limit.
If Contractor fail to provide PAN copy is TDS 20% deductible in case if payment exceed the exemption limit or from the first bill.
Example :- if we pay to a contractor only Rs.15000/- and he fail to give PAN card copy , should we deduct TDS 20% or No need to deduction because amount is under the exemption limit.
19 August 2014
NO, if payment is made below exemption limit then there is no need to get PAN.
but if once the limit is crossed you need to get PAN otherwise 20% tds.
but if once the limit is crossed you need to get PAN otherwise 20% tds.
19 August 2014
yes fully agreed with above reply.
19 August 2014
Transporter are fully exempt from first bill if provide PAN copy. Then If a transporter not provide PAN copy at the time of first bill eg. for Rs.5000/- is TDS 20% from first bill
27 July 2025
To clarify your query regarding TDS deduction under **Section 194C read with Section 206AA (often referenced as 94C in some contexts):**
* **Exemption limits:**
For contractors (including transporters), TDS is required only if the **payment exceeds ₹30,000 per transaction or ₹75,000 in aggregate during the financial year**.
* **PAN non-provision and higher TDS rate (20%):**
If the **payment exceeds the exemption limits**, and the deductee **fails to provide PAN**, then TDS should be deducted at **20%** (instead of the normal 1% or 2% as per 194C).
* **If payment is below exemption limit:**
There is **no TDS deduction required**, and no need to collect PAN or deduct at 20%, even if PAN is not provided.
---
### Your example:
* Payment to contractor = ₹15,000 (which is below ₹30,000 limit)
* Contractor did not provide PAN
**Action:** No TDS deduction required on this ₹15,000 payment as it is under exemption limit, regardless of PAN availability.
---
### Additional point on Transporters:
* Transporters have a specific exemption from TDS for the **first bill of up to ₹5,000**, if PAN is provided.
* If transporter does **not** provide PAN, TDS @ 20% is to be deducted **from the first bill itself**, even if amount is below ₹5,000.
---
### Summary Table
| Payment Amount | PAN Provided | TDS Deducted? | TDS Rate |
| ---------------------------- | ------------ | ------------- | -------- |
| ₹30,000 per payment | Provided | Yes | 1% or 2% |
| > ₹30,000 per payment | Not Provided | Yes | 20% |
| Transporter payment < ₹5,000 | Provided | No | NIL |
| Transporter payment < ₹5,000 | Not Provided | Yes | 20% |
---
If you want, I can help with further detailed examples or relevant sections. Let me know!
* **Exemption limits:**
For contractors (including transporters), TDS is required only if the **payment exceeds ₹30,000 per transaction or ₹75,000 in aggregate during the financial year**.
* **PAN non-provision and higher TDS rate (20%):**
If the **payment exceeds the exemption limits**, and the deductee **fails to provide PAN**, then TDS should be deducted at **20%** (instead of the normal 1% or 2% as per 194C).
* **If payment is below exemption limit:**
There is **no TDS deduction required**, and no need to collect PAN or deduct at 20%, even if PAN is not provided.
---
### Your example:
* Payment to contractor = ₹15,000 (which is below ₹30,000 limit)
* Contractor did not provide PAN
**Action:** No TDS deduction required on this ₹15,000 payment as it is under exemption limit, regardless of PAN availability.
---
### Additional point on Transporters:
* Transporters have a specific exemption from TDS for the **first bill of up to ₹5,000**, if PAN is provided.
* If transporter does **not** provide PAN, TDS @ 20% is to be deducted **from the first bill itself**, even if amount is below ₹5,000.
---
### Summary Table
| Payment Amount | PAN Provided | TDS Deducted? | TDS Rate |
| ---------------------------- | ------------ | ------------- | -------- |
| ₹30,000 per payment | Provided | Yes | 1% or 2% |
| > ₹30,000 per payment | Not Provided | Yes | 20% |
| Transporter payment < ₹5,000 | Provided | No | NIL |
| Transporter payment < ₹5,000 | Not Provided | Yes | 20% |
---
If you want, I can help with further detailed examples or relevant sections. Let me know!
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