Tds on transport of goods agency accor. to new rule 01-06-15

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This query is : Resolved

Bidyananda kahar (Querist)

20 June 2015 Hi Sir/Ma'm
I face problem about following matter --
I am working in Pvt Ltd Co. and a Service Provider Transporter Agency (Also Pvt Ltd)
provides service to us and they have more
than 10 Trucks.
According to new rule it is mandatory to deduct TDS if the Transporter Operator is having more than 10 trucks
But problem is- our tranport operator not having any own trucks and used rented trucks( more Than 10 trucks) to providing transport service to us .
So, should I deduct TDS against transportation bill or not.
Thanking you.
from B.N.Kahar

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

20 June 2015 Deduct TDS u/s 194C subject to threshold limit. No exemption in this case.

CA Himanshu Ojha

CA Himanshu Ojha (Expert)

20 June 2015 The provision of section 194C of the Act has been amended to expressly provide that the relaxation from no-deduction of tax shall only be applicable to the payment in the nature of transport charges made to a contractor who is engaged in the business of transport i.e. plying, hiring, or leasing goods carriage and a person who is not owing more than 10 goods carrige at any time during the previous year and who has furnished a declaration to this effect along with his PAN.

In your case, Just obtain the certificate and PAN of the transporter & keep in your records. TDS need not require to be deducted.

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