TDS on contract work

This query is : Resolved

Vinod Kumar Mathuria (Querist)
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16 July 2010 Payment to courier agency is booked as freight in books and TDS is deducted @ 2% my query is that :

Either it is considered as transporter service or not
rate will be zero in case where pan is available

Akhil Agrawal

Akhil Agrawal (Expert)
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16 July 2010 no way this is not the case of transportation bcoz in 194C it has been mentioned that transporter is a person who hires, plying or leasing of the goods carriages

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 July 2010 Courier service cannot be said to be transport service. HenceTDS deductible.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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16 July 2010 AGREED WITH EXPERTS. TDS WILL BE DEDUCTIBLE U/S 194C.

Venkat Rao Marella

Venkat Rao Marella (Expert)
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16 July 2010 agree with Akhil. For no TDS U/s 194C, the transporter should be engaged in the business of hiring/plying/leasing of goods transport carriages.
Moreover, TDS is deductible for courier oprerators.,

The carriage of documents is in the nature of carriage of goods and thus will come U/s 194C. [reffer circular 715, dated:8-8-1995].

Venkat.

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