TDS on transporter

This query is : Resolved

Nitesh Sethiya (Querist)
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24 December 2009 A proprietorship trnasport company has paid freight to subcontractors in the A.Y.2004-05 but has not deducted tax at source on freight payment. IS there is any liability on the transporter? If yes then how to save from the litigation?

Pls tell me ASAP.

Secondly he is taking loan from the tata finance company Rs. 350000 and paid five monthly installment of Rs. 5125/- each in cash then there is nay liability U/s 269T

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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25 December 2009 In both cases there is no liablity on the transporter. in first case the expenses is disallowed and in 2nd case 269t is not applicable as the amount paid in not more than 20000/-.

Nitesh Sethiya

Nitesh Sethiya (Querist)
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25 December 2009 If expenses is disallowed ten asses has to pay tax on such amount. Tell me the source of save the assessee.........

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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25 December 2009 As your Case is for A.Y. 2004-05 , you can't do any thing you have to pay taxes . and simmilarily you can cliam it in the A.Y. in which you have paid taxes.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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25 December 2009 tds need to be deposited else you will be treated as assessee in default under provisions of tds

269-T is applicable because loan amount is more than 20000/- also the lender is not a banking company

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