Tds on transporter

This query is : Resolved

rohit jain (Querist)
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12 June 2015 I AM MAKING PAYMENT TO TRANSPORT AGENT OF FREIGHT , WHAT ARE THE TDS LIABILITY UNDER NEW PROVISION EFFECT FROM 01-06-2015 .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 June 2015 If the transporter owned and operates up to 10 trucks and furnishes PAN No. no tds need to be deducted from 01-06-2015, else TDS applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 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.

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