TDS on contract work


This query is : Resolved 

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

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

16 July 2010 Courier service cannot be said to be transport service. HenceTDS deductible.

16 July 2010 AGREED WITH EXPERTS. TDS WILL BE DEDUCTIBLE U/S 194C.

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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