Tds on payment to transporter

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manpreet ahuja

manpreet ahuja (Querist)

31 May 2015 Whether and when tds provision apply on payment given by huf firm to transporter ??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

31 May 2015 In case of payments made under sec. 194A, 194C, 194H, 194I and 194J by HUF, only if the turnover or professional receipt exceeds sum of Rs. 100 lakh or Rs. 25 lakh respectively in previous year, TDS is required to deducted. Example: Tax Audit is applicable in FY 2013-14 so TDS required to be deducted from FY 2014-15.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

31 May 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 will take effect from June 1, 2015.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

31 May 2015 • Relaxation from non deduction of TDS shall be allowed only to payment made to such transporters who are engaged in the business of transport and who is eligible to compute income as per 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 given a declaration to this effect along with his PAN.

• TDS has to be deducted in all other cases of payments made to transporters.

Format of declaration:

https://www.caclubindia.com/share_files/sample-declaration-u-s-194c-6-for-non-deduction-of-tax-at-source-67139.asp

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