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tds on contarctor

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manish sharma (Querist)
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16 July 2011 in sec 194c tds on contractor-in case of transporter tds is deduct 0% if he provide the pan no.to the deductor.i want to ask you this condition is applicable only in assessee covered u/s 44AE.As per circular no. 5/2010 this amendment is applicable on the transporter as defined under sec 44AE. Sec 44AE covers only those transporters who have less then ten trucks. So the transporters having more than ten trucks are still under the purview of TDS.if the transporter is not taken bebfit in sec 44ae than tds is deduct.

please clarify the matter its very urgent

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 July 2011 No it is not so.

In section 194C only the definition of Goods Carriage has been explained and this definition says that goods carriage under 194C and U/s 44AE will have the same meaning.

So, No TDS is deductible U/s 194C on producing the PAN in the cases of all the transporters.

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