TDS on carriage

This query is : Resolved

samir ghosh (Querist)
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09 December 2010 Carriage paid to transporter during the year more than 4.50 Lacs whether the purchaser is liable to deduct TDS u/s 194C if not whether this amount of carriage is not allowable as expenses ?
Pls help

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 December 2010 Who ever is making payment directly to transporter have to deduct TDs u/s 194C.

CA Anisha Ray

CA Anisha Ray (Expert)
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10 December 2010 If this amount was paid in the year 2009-2010, and if the transporter has PAN, then it is okay if you have not deducted TDS.

However, if PAN is not available you should have deducted TDS @2% failing which the expenditure will get disallowed.

You can still pay the TDS amount with interest and get the deduction in the year of deposit of TDS with the govt.

Balakrishnan

Balakrishnan (Expert)
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10 December 2010 Pl clarify whether the payment is to a single transporter or many? also it is needed whether the transporter is individual or others? Then only we can solve the query accurately.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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13 December 2010 Anisha Ray says...
However, if PAN is not available you should have deducted TDS @2% failing which the expenditure will get disallowed.
i think TDS in that case would be 20 % not 2%

CA Anisha Ray

CA Anisha Ray (Expert)
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14 December 2010 The rule of deducting 20% is applicable from April 2010. If the expense has been incurred before April 2010, it will remain at 2%, if after April 2010, it will be 20%.

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