Tds on gta

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ankur (Querist)
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21 August 2017 Company has receievd GTA services/Freight Bills amounting to RS. 450000 (Break up: 95000+45000+75000+75000+46000+54000+55000) for 1st quarter of FY 17-18 i.e april 17 to june 17.
The GTA provider has mentioned PAN NO on bill and moreover he has given undertaking of not having more than 10 Vehicles during the year.
I had deducted tds @ 1% on GTA for proprietorship. but the GTa has argued to refund the same and asking for reason of deduction.
i have replied that since the value of services provided by GTA is more than Limit under 194C and to on safer side i have deducted TDS.
Please reply in light of related provision of the IT Act, What is to be done and what is proper way of booking such expenses.

sivaram

sivaram (Expert)
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21 August 2017 You should not have deducted TDS since the Transporter has given the declaration any way from next month onwards dont deduct it for this month if you have deducted any TDS Please reverse

ankur

ankur (Querist)
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21 August 2017 Dear Sivaram Sir,
thanks for your valuable reply, but can it be disallowed by IT Deptt. on the basis of Amount of turnover.

sivaram

sivaram (Expert)
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21 August 2017 dont worry about anything you have valid PAN and declaration given by the Transporter beyond which you need not look into anything

ankur

ankur (Querist)
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22 August 2017 Dear Sivaram Sir,
thanks for your reply...

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