Tds on transporters u/s 194c
This query is : Resolved
01 June 2015
DEAR ALL,
I WANTED TO KNOW WHETHER TDS IS LIABLE TO BE DEDUCTED OR PAID IF I AM A COMMISSION AGENT WHO HIRES TRUCKS OF VARIOUS TRUCK OWNERS TO GIVE TO OTHER PARTIES, AS I DONT HAVE TRUCKS OF MY OWN.THE AMMENDMENT DOES NOT MAKE THIS FACT CLEAR AND HENCE IT IS VERY DIFFICULT TO INTERPRET.PLEASE HELP
I WANTED TO KNOW WHETHER TDS IS LIABLE TO BE DEDUCTED OR PAID IF I AM A COMMISSION AGENT WHO HIRES TRUCKS OF VARIOUS TRUCK OWNERS TO GIVE TO OTHER PARTIES, AS I DONT HAVE TRUCKS OF MY OWN.THE AMMENDMENT DOES NOT MAKE THIS FACT CLEAR AND HENCE IT IS VERY DIFFICULT TO INTERPRET.PLEASE HELP
02 June 2015
WEF 01/06/15, the benefit of non deduction available only to the truck owners (not more than 10)
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02 June 2015
Dear Ramprasadji,
Thanku for your reply, however the new ammendment is not clear in terms of deduction in case of transport commission agents. For example if my client hires a vehicle for third party and receives the freight charges from the party and subsequently deducts commission from the same and pays the remaining amount to the truck owner, so in such case is my client liable to deduct tds on the freight charges paid to the truck owner if the truck owner owns more than 10 trucks?According to my opinion my client will be liable to deduct TDS even if he is acting in the capacity of an agent.
Thanku for your reply, however the new ammendment is not clear in terms of deduction in case of transport commission agents. For example if my client hires a vehicle for third party and receives the freight charges from the party and subsequently deducts commission from the same and pays the remaining amount to the truck owner, so in such case is my client liable to deduct tds on the freight charges paid to the truck owner if the truck owner owns more than 10 trucks?According to my opinion my client will be liable to deduct TDS even if he is acting in the capacity of an agent.
03 June 2015
If you are paying to truck owner more than 10 deduct tax. Else get the PAN photo copy nd declaration then no TDS.
The amendment gives benefit of non deduction in case of payment to truck owner not owning more than 10. It only refers to whom we are making payment and not one who is making the payment.
The amendment gives benefit of non deduction in case of payment to truck owner not owning more than 10. It only refers to whom we are making payment and not one who is making the payment.
09 June 2015
If you are liable to deduct TDS i.e. PVT ltd co or Partnership firm or Individual/HUF covered u/s 44AB tax audit, then you will have to follow provisions u/s 194C which is to deduct tax if transporter has more than 10 trucks or take declaration and collect PAN copy whatever be the case.
In your case, your become the deductor because you are making payment so above provisions will apply as be the case.
In your case, your become the deductor because you are making payment so above provisions will apply as be the case.
11 June 2015
I also want to know if I am a transporter acting as a agent..not owning any goods carriages..is liable to get his TDS deducted from transporters who are making payment to me? Or providing declaration in this behalf would be enough?
27 July 2025
This is a common confusion regarding **TDS under Section 194C on transporters and transport commission agents**, especially after the 2015 amendment.
---
### Key points to clarify your doubts:
1. **Who is liable to deduct TDS?**
The person making payment to the transporter (i.e., the deductor) is liable to deduct TDS.
2. **Amendment regarding truck owners and number of trucks (effective 1 June 2015):**
* TDS under Sec 194C is **not required to be deducted on payments to transporters who own 10 or fewer goods carriages**.
* This exemption applies **only to the truck owner (supplier of transportation service)**, **not to commission agents or intermediaries**.
3. **If you are a commission agent (you hire trucks from owners and then provide transportation services to clients):**
* When you pay the truck owners (the actual transporters), **you may need to deduct TDS** if they own **more than 10 trucks**.
* If truck owners own 10 or fewer trucks, and they provide a declaration in Form 12B (stating their fleet size), **you can avoid TDS on such payments**.
4. **When you receive payment from your client (the party to whom you provide transportation services):**
* You are not liable to deduct TDS on the amount you receive (unless other specific provisions apply).
* Your client may deduct TDS on the amount paid to you if you fall under the TDS provisions (e.g., if you are providing transport services and you do not qualify for the exemption).
5. **In your case (commission agent who does not own trucks):**
* You **must deduct TDS on payments made to truck owners who own more than 10 trucks**.
* For truck owners owning 10 or fewer trucks, get their PAN and Form 12B declaration to avoid TDS deduction.
* Your liability to deduct TDS arises because you are making the payment.
6. **If you act as a transporter agent (not owning trucks):**
* TDS is **deducted on payments to actual truck owners** (if conditions apply), not on payments to you from other transporters or clients.
---
### Summary:
| Situation | TDS Deductible? | Condition |
| ----------------------------------------- | ---------------------------------------- | ------------------------------------ |
| Payment to truck owners owning ≤10 trucks | No TDS if declaration (Form 12B) given | Owner must provide declaration & PAN |
| Payment to truck owners owning >10 trucks | Yes, TDS required @ 1% under Sec 194C | PAN should be obtained |
| Commission agent paying truck owners | Deduct TDS on truck owners as above | Agent liable as payer |
| Client paying commission agent | Client may deduct TDS if agent qualifies | Based on nature of services |
---
If you want, I can help draft the exact wording for the declaration (Form 12B) that should be collected from the truck owners or explain Form 12B contents. Would that help?
---
### Key points to clarify your doubts:
1. **Who is liable to deduct TDS?**
The person making payment to the transporter (i.e., the deductor) is liable to deduct TDS.
2. **Amendment regarding truck owners and number of trucks (effective 1 June 2015):**
* TDS under Sec 194C is **not required to be deducted on payments to transporters who own 10 or fewer goods carriages**.
* This exemption applies **only to the truck owner (supplier of transportation service)**, **not to commission agents or intermediaries**.
3. **If you are a commission agent (you hire trucks from owners and then provide transportation services to clients):**
* When you pay the truck owners (the actual transporters), **you may need to deduct TDS** if they own **more than 10 trucks**.
* If truck owners own 10 or fewer trucks, and they provide a declaration in Form 12B (stating their fleet size), **you can avoid TDS on such payments**.
4. **When you receive payment from your client (the party to whom you provide transportation services):**
* You are not liable to deduct TDS on the amount you receive (unless other specific provisions apply).
* Your client may deduct TDS on the amount paid to you if you fall under the TDS provisions (e.g., if you are providing transport services and you do not qualify for the exemption).
5. **In your case (commission agent who does not own trucks):**
* You **must deduct TDS on payments made to truck owners who own more than 10 trucks**.
* For truck owners owning 10 or fewer trucks, get their PAN and Form 12B declaration to avoid TDS deduction.
* Your liability to deduct TDS arises because you are making the payment.
6. **If you act as a transporter agent (not owning trucks):**
* TDS is **deducted on payments to actual truck owners** (if conditions apply), not on payments to you from other transporters or clients.
---
### Summary:
| Situation | TDS Deductible? | Condition |
| ----------------------------------------- | ---------------------------------------- | ------------------------------------ |
| Payment to truck owners owning ≤10 trucks | No TDS if declaration (Form 12B) given | Owner must provide declaration & PAN |
| Payment to truck owners owning >10 trucks | Yes, TDS required @ 1% under Sec 194C | PAN should be obtained |
| Commission agent paying truck owners | Deduct TDS on truck owners as above | Agent liable as payer |
| Client paying commission agent | Client may deduct TDS if agent qualifies | Based on nature of services |
---
If you want, I can help draft the exact wording for the declaration (Form 12B) that should be collected from the truck owners or explain Form 12B contents. Would that help?
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