TDS SEC.194C

This query is : Resolved

rajesh (Querist)
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10 October 2009 DEAR ALL

AS PER NEW AMENDMENT PAYMENT TO TRANSPORT OPERATORS (I.E. IN THE COURSE OF BUSINESS OF PLYING, HIRING OR LEASING GOODS CARRIAGES) IS NOT SUBJECT TO TDS UNDER SECTION 194C IF THE RECIPIENT FURNISH HIS PAN TO THE PAYER.
1. AN ASSESSE PAID LORRY FRIGHT CHARGES TO LORRY OWNER 33000 CONTRACTOR IS SUBMIT HIS PAN TO DEDUCTOR. DEDUCTOR IS LIABLE TO DEDUCT TDS ON FRIGHT CHARGES OR NOT AS PER NEW AMENDMENT.
2. ASSESSEE IS PAID TO TAXI DRIVER ERY MONTH RS. 35000 FOR TRANPORT OF HIS EMPLOYES AND FIELD WORK OF OFFICE. DRIVER HAVE PAN WE ARE TDS DEDUCT OR NOT AS PER NEW AMENDMENT.
3. LORRY OWENER IS INDIVIDUAL ASSESSEE NOT COMPANY AND FIRM AND HE GOT ONLY TWO LORRIES
PLEASE TELL
THANKS INADAVANCE

M Prabhakar Menon

M Prabhakar Menon (Expert)
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10 October 2009 Since the PAN is furnished there is no need to deduct TDSu/s 194C

Shyam Lal Naik

Shyam Lal Naik (Expert)
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10 October 2009 A1. No need to deduct TDS. In my view, it will be a better practice, if the transporter furnishes his PAN in the bill itself.

A2. Taxi is not goods carriage. Hence, the exemption from TDS is not applicable in this case. Nolding a PAN or not does not help.

A3. The lorry owner may submit a declaration in form 15I to the deductor. In such an eventuality, TDS not required to be deducted.

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