Tds on gta

This query is : Resolved

GANESAN C (Querist)
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05 June 2015 Dear Experts,

Please clarify my queries,

Q.1) One transporter submitted freight invoice in the gross value of Rs.10000/- after deducting late delivery Rs.1000/- net value of invoice Rs.9000/-. Please suggest we have to deduct the tds-2% on gross value or net value.

Q.2) Transporter submitted invoice for Rs.10000/- we have raising separate debit note for Rs.1000/- plase suggest we have to deduct tds on Rs/10000/- or Rs.9000/-

Kaustuv

Kaustuv (Expert)
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05 June 2015 In any case, you will book expenses of Rs. 9,000 and will pay him Rs. 9,000 only. Rs. 9,000 is his income and your payment towards provision of service and TDS should be deducted on that.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 June 2015 Payments to transporters attract Section 194C. Earlier 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.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 June 2015 Further when you are required to deduct TDS u/s 194C check whether the threshold limit of 194C is being crossed which is:

Rs 30000/- single bill/payment

Rs 75000/- annual total

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