Tds on transporter

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2011 Dear Sir,
I want to know the TDS Deduction is made on Transporter or not if PAN is provided but he has more than 10 vehicle for transport.

Who will give the IT exemption certificate to the deductor.

Its urgent Kindly reply me fast.

Thanks
Ashish Surana

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)

17 October 2011 (1)
As per Income tax act section 194C , Tds is not required to be deducted on payments made to transporter if Pan number has been provided to deductor .

(2)
Further as per section 197 of Income tax act ,Assessing Officer can issue a Nil rate certificate to parties under specified section on application on form 13 with prescribed details and if such parties produce "Nil " rate certificate to deductor , deductor is not required to deduct tds . so In both the cases tax deduction is Nil.

(3)
Third type of Nil transaction is "where amount paid is less than cut off amount given in respective section"

In all three case above , Tin-Nsdl has provided tags in etds return .

1.To incorporate Nil rate transporter entries in etds return by inserting a tag "T" in remarks in 26q

2.To incorporate Nil rate entries due to section 197 Tag "B" is to be shown in remarks column in 26q

3.Now Tin-NSDL has also provided a tag "Y" to incorporate entries of nil deduction where amount is less than cut-off amount

Nil TDS on Transporter and others to be reported in ETDS quarterly returns.

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