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194c on transportation

prince (Auditer) (53 Points)

22 May 2013

Dear Sir,

can i anyone guide me that whether Tds is deducted at the time of credit/payment of transportation charge under 194C during the F Y 2013-14?

Thanks

Prince Joseph

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9 Replies

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 22 May 2013

As per section 194C,the payer is required to deduct tds on payment to contractors or sub contractors at the time of credit to payee's a/c or paymant by cash/chque /draft whicever is earler

prince (Auditer) (53 Points)
Replied 22 May 2013

Dear Ms Pooja,

Thanks for your reply. My doubt is regarding payment of transporting charge. what is latest amended ?

When i search in net , i found that no need to dedcut tds if assesse has PAN. but i found from one book that TDS need to deduct regarding payment of transporting charge in any transport mode other than railway

Thanks

Prince Joseph

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 22 May 2013

no tds is required to be deducted if the payment with respect to a cntract does not exceed Rs.30000.However TDS is required to be deducted if annual aggregate payment to the transporter exceeds rs.75000.TAx at higher rate is to be deducted if the payee does not furnish pan otherwise at rates as applicable

sonijohn (auditor) (53 Points)
Replied 22 May 2013

Answer is xactly correct , but still there is some peocedures for the submittion of PAN for claiming xcption u/s194c,i think act simply says about the submition of PAN but no more details about the procedures to be followd

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 22 May 2013

yes.. got the point now . As per subsection 6 of 194C Government has notified vide amended section 194C,

throughFinance Act (2) of 2009, No deduction shall be made from

any paymentsmade to a contractor during the course of business of

plying, hiring or leasing goods carriages, on furnishing of his PAN to

the deductor.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 22 May 2013

Refer 194C(6)

Nil tds on paymeny made to transportation of goods

and transporter should involve in the business of phlying,hiring,transportation of goods

and you need to provide details of transportation paid as nil tds in tds returns for the respective quarter

as per ammended rue 31A vide notification 16/2011, dated 29/03/2011

please refer

/articles/inclusion-of-transporters-details-in-tds-returns-are-mandatory-17543.asp

AMIT KUMAR GARG (CA FINAL) (22 Points)
Replied 06 January 2014

"The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1 per cent for an individual/HUF transporter and 2 per cent for other transporters up to 31-3-2010." As per above statement of 194C clarification regarding "quote" because my auditor require any confirmation from the transporter that "How we can confirm that this firm is of same individual/huf?"

s.koteswararao (CA Internship) (23 Points)
Replied 05 April 2014

will u please explain the difference between contract of service and contract for service?

Naveen A (Student CA IPC / IPCC) (23 Points)
Replied 28 November 2014

Difference between Contract of service and Contract for service !!!!!

A contract of service is different from a contract for service. In a contract of service the employer normally enjoys the power of control over the work of the servant and the servant is bound to obey the orders/instructions of the master.

An independent contractor, on the other hand, undertakes to produce the required result, but in the actual execution of the job to produce the result, he is not under the order or control of the person for whom he executes that work. He is free to use his discretion.

The line of demarcation between an independent contractor and an employee is very thin and the two concepts sometimes overlap. In such a situation, the question about the relationship of employer and employee needs to be determined with reference to the facts and circumstances of each case as to who are the parties to the contract, who pays the wages, who has the power to dismiss, what is the nature of the job, and the place of executing the job, all have to be kept in mind. Out of so many tests, the vastly important test which till now held ground was the element of control and supervision of work.