Tds on transporter

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 May 2012 dear all

we are running a call center. we provide cab facility to the employees to pick n drop them.
my ques is whether we are required to deduct tds on cab hire charges if the deductee has provided a valid pan??

plz reply its urgent

thnks in advance

09 May 2012 Yes you have to deduct TDS on payment made for cab hire at the rate of 2% if PAN is provided by them. If PAN is not provided than @ 20% .

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 May 2012 but in case of transporters no tds to be deducted if valid pan is provided

09 May 2012 Yes, Agree with the expert,

the exemption as provided in section 194C is not eligible in your case, as the same is applicable only if the payment is made to transporter for plying, hiring of goods.

The facility is provided to employees, Accordingly, TDS will be deducted @2%.


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