TDS Transporter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2010 What is the limit for TDs on Transporter???
How to show the entry in TDs Return in case no TDS is deducted???
Is it compulsory to file TDS return as no other payments liable for TDS and in case of Transporter no need to dedeuct TDS as PAN is given by transporters

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 October 2010 No limit. If PAN given TDS not to be deducted. No need to show the transactions on which TDS not deducted in TDS return.
If PAN not given TDS to be deducted @ 20%.

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2010 Dear sanjay It needs to mention....
See latest FVU3.0 Instructions..

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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28 July 2025 Here’s a clear summary on **TDS on Transporters** based on your query:

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### 1. **TDS Deduction Limit for Transporters**

* **Threshold limit:**

* If payment to a transporter exceeds **₹30,000** in a financial year, TDS is applicable under **Section 194C(6)**.
* **Rate of TDS:**

* **1%** of the payment (instead of the usual 2%) for transporters who provide their **PAN**.
* If **PAN is not provided**, TDS is deducted at **20%**.

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### 2. **If PAN is Provided by Transporter**

* You **must deduct TDS at 1%** if the payment crosses ₹30,000.
* If you do **not deduct TDS**, then:

* **No need to mention these transactions in the TDS return** (Form 26Q) where no TDS was deducted.
* You don’t have to show any entry in the return for payments without TDS deduction.

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### 3. **If No TDS is Deducted**

* If no other payments liable for TDS and **no TDS deducted on transporter payments** (e.g., because payment is under ₹30,000 or transporter has PAN but you didn’t deduct for some reason),

* You may **not be required to file TDS return for that quarter**.
* But if you have any other TDS deductions, then file normally.

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### 4. **In case PAN is Not Provided**

* Deduct TDS at **20%**.
* You must report this in TDS return (Form 26Q).

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### 5. **Entry in TDS Return**

* Only transactions where TDS is deducted should be reported.
* Transactions without TDS deduction (below threshold or exempt due to PAN) need **not** be reported in the TDS return.

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### Reference

* Section 194C(6) of Income Tax Act
* CBDT Circulars & FVU (File Validation Utility) instructions (especially latest FVU 3.0)

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