Tds u/s 194c freights reg.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2016 Dear Sirs,

Please clarify on the following issue.

T.D.S under Section 194C - Payments towards truck Hires - Declarations from Transporters / Truck owners.

We are regularly receiving raw cotton bales purchased from various Ginners / Traders on ex-mill (Spot purchase) basis - Normally the freight is on to-pay basis, paid by the Company - Some times the purchase is on F.O.R Mill delivery basis that is Freight is to suppliers account, but paid by the Mills and debited to supplier's account. In both cases Company is paying the freights. There is no specific transport contract entered with any transporters, for this purpose. The Sellers will arrange trucks on least best hire bargain through the various transporters. The transporters are giving L.R followed with the truck. The Drivers are bringing with them the declaration forms issued by the truck owners declaring that "they do not own not more than 10 trucks during the F.Y 2016-17". We are collecting the declarations of the owners of the trucks and payment is being made to the drivers, though they are booked through some transporter and a L.R issued by the transporter. We are not paying the amount to the transporter.

In the above system of freight payments, are we supposed to take the declarations from transporters who have issued L.RS, but no payment is made to them. Is it wrong to upload the particulars of the owners of the vehicles, in the Form 26Q in each quarter.
(or)
Are we at default if we do not upload the transporters particulars and not collected the declaration forms from transporters? Could you please answer the correct way of the procedure in this regard?

Regards,
M.Gopalakrishna,
Sr. Manager(Accounts).
SREE SATYANARAYANA SPINNING MILLS LTD
TANUKU-534215

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 November 2016 No TDS applicable if you are making payment to the person who owns the truck and furnished the declarations. In such a case you have to upload only the owners details.

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