04 May 2014
A dealer from maharashtra state purchases material from Gujrat. on the invoice he is charging Rs 35000 as Transportation charges. so whether dealer in maharashtra is liable to deduction Tax at source u/s 194, though dealer in gujrat haf furnished his PAN.
because as per sec 194 C, Payment to transporter is not liable to TDS u/s 194 C if covered u/s 44AE and furnish his PAN.
04 May 2014
44AE is not relevant. however, 194c(6) only applies if the payment is being made to the transporter directly. If the seller is including transportation charges in his invoice itself, you will still have to deduct TDS.
26 June 2014
But as per sec 194C(6),"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum". here i want to highlight the line...During the course of business... means in my case supplier from Gujarat, providing transportation facility during the course of sale (Business) no deduction u/s 194C will be there, provided he furnish his PAN.
26 June 2014
But as per sec 194C(6),"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum". here i want to highlight the line...During the course of business... means in my case supplier from Gujarat, providing transportation facility during the course of sale (Business) no deduction u/s 194C will be there, provided he furnish his PAN.
CAclubindia
