Tds on transport payment.

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Srinivasan.B (Querist)
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26 July 2011 We are doing building material business. In this continuation we are hiring the vehicles for materials delivery. Our freight range will be Rs.100/- to Rs.15000/- As per the recent amendment in Sec194C if transporters provide PAN does not required to deduct TDS.

Q1. If we pay Rs.15000/- (aggregating) per annum tds to be deducted or not if transporters does not provide PAN?

Whether Slab rate of Rs.30000/75000 will be applicable to freight payment since it is comes under 194C.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 July 2011 A transporter is first a contractor and after that he is a transporter.

In my view, TDS liability arises only when the limits are exceeded by a particular transporter.

Srinivasan.B

Srinivasan.B (Querist)
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29 July 2011 Thanks for your valuable suggestion.

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