tds on transporter

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2010
Sir

We are purchasing the product from farmers on delivery basis eg., our company purchasing 1000kgs of x at Rs.17.10 (incl.freight )which is delivery price ( total cost to us Rs.1.71lakh ) but we are paying freight to truck owners ( our transactions regarding freight ranging from Rs.20k to Rs.25k which is less than Rs.35k on behalf of farmers ) is it necessary to deduct the tds u/s 194c

Q2. whether i can deduct the tds
at the time of advance payment to contractors

regd
rr..........

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

28 June 2010 TDS U/S 194C NEEDS TO BE DEDUCTED ONLY IF TRANSPORTER DOES NOT GIVE PAN AND TRANSACTION EXCEEDS THE THRESHOLD LIMIT, @ 20%.
THRESHOLD LIMIT:-
SINGLE BILL--RS.20000/-(RS.30000/- FROM 01.07.2010)
ANNUAL PAYMENT--RS.50000/-(RS.75000/- FROM 01.07.2010)
YES, TDS NEEDS TO BE DEDUCTED AT THE TIME OF ADVANCE PAYMENT. REMEMBER IF TRANSPORTER GIVES PAN TDS SHOULD NO BE DEDUCTED.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now