Tds return for payment to transporters

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2013 Dear Sir

I had started business April 2013 as a sole proprietorship business concern.

I pay freight to transporters for purchase of goods.

I have not obtained TAN(Tax Deduction Account Number) as yet.

Am I liable to file TDS Returns for details of transporters?

Moreover, will penalty of Rs.200 per day be applicable for me in case I file Returns for the first two Quarters? My TDS amount is Rs. Zero.

Please Opine

Ganeshbabu K

Ganeshbabu K (Expert)
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20 December 2013 Yes it is mandatory to provide pan of transporters in TDS return,Kindly refer to my article here,

https://www.caclubindia.com/articles/inclusion-of-transporters-details-in-tds-returns-are-mandatory-17543.asp#.UrQw__QW11Y

First of all 200 per day is as per Sec.234E and it is not called as penalty it is Fee for delay filing of TDS returns.
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however as per 234E this fee shall not exceed tds deducted..so if in your case (only transport payments eligible for exemption under 194C(6))as tds deducted is nil your fee u/s 234E also nil...
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But you may not escape from New section which impose penalty on you which is Section 271H

(i)Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees,

a)If deductor exceeds one year time limit to File TDS Statement.

(b)If deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.
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So it is my advise to file return to avoid penalty under section 271H as you are mandatorily required to file NIL TDS return

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