Tds....urgent....!!!

This query is : Resolved

saurin (Querist)
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13 January 2012 If there is a courier company (say X ltd) which transfers document as well as goods for Y Ltd , and Y ltd transfers all the transaction with X ltd to Postage and telegram and the total transaction amount is 500,000 ....X ltd Quotes PAN on all bills...

Query is : Is Y ltd liable to deduct TDS of X ltd under section 194C...?

and if yes then what is difference between FREIGHT and COURIER expense...?

as the section 194c of the act does not include the deduction of tds for GTA (Road transport agency if provided PAN)

Please provide provisions or explaination of ACT...

sahil jain

sahil jain (Expert)
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13 January 2012 Courier service is different from GTA. so, TDS shall be decucted for X Ltd.

For the definition of GTA we could refer the Service Tax act which says that "Goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

So if a person is providing you with the consignment note then we can say that its GTA and courier service providers doesnot provide us with the consignment note, so TDS should be deducted U/S 194C

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