Tds on freight

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This query is : Resolved

kami kingrani (Querist)

06 June 2015 Dear sir, we receive a bill from our transporter of amount 157890.00 of dtd 28/05/2015 & same show in our books on same dt & still payment not made to transporter we will pay the bill on 15/06 & now my ? is we have to deduct tds on this or we ignore it because we book expense before the 01/06

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

06 June 2015 Since expenses booked before 01.06.15 there is no need to deduct TDS if PAN is furnished by the transporter.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

06 June 2015 Payments to transporters attract Section 194C. Prior to 01.06.2015 if transporter provided their PAN, TDS was not required to be deducted.

Now there is an amendment in the provisions of section 194C of the Act to expressly provide that the relaxation from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e. a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

This amendment is applicable from June 1, 2015.

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