194c TDS

That PAN & Declaration thing wont work Because

As per 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.

As per Explanation to S.194C

(ii) "goods carriage" shall have the meaning assigned to it in the Explanation to sub-section (7) of section 44AE;

Explanation 7 to S.44AE reads as

the expressions "goods carriage"  and "heavy goods vehicle" shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

S.2(14) of the Motor Vehicles Act, 1988 reads as

But however "work" interalia includes

(c) carriage of goods or passengers by any mode of transport other than by railways;

Therefore TDS is definitely applicable

As per Indian Contract Act , agreement can be written or verbal

This would not have any affect on the subject mstter

It appears that Hospital Co. pays the clinical establishment everytime it uses the services of clinical establishment , so not expecting 30,000 or more amount in single go

Overall threshold limit of 75,000 might be crossed

If the Tax was not deducted because the threshold limit was not deducted then there should be no problem but once the limit is exceded then , you must deduct tax even for previous transactions on which earlier tax was not deducted.

 [Refer S.201 for interest]

194C(5) No deduction shall be made from the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed thirty thousand rupees :

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds seventy-five thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section.

Can any please make it more clear.

1) Ambulance hired by hospital (Pvt.Ltd) from another clinical establishment occassionaly, to be considered as Transport Contract or not.

If it is to be considered as transport contact, is it eligible for TDS exemption given below

2) Also the effect of service tax exemption on ambulance hire charges/Transportation on TDS.

Should i consider the definition of service tax for tds purpose as both are proposed by Cen. Govy.

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 plying, hiring and leasing goods carriages, where such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum.”

This provision comes into force from June 1, 2015.

Sorry if my explanation was not clear (I thought I made it very clear)

I reiterate

"goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods
 

THIS APPLIES EVEN POST 1.06.15

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 plying, hiring and leasing goods carriages, where such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum.”

 

Answer to both of your Querry is "NO".

The objective of both the Acts are different, Purpose for exclusion is also different . Taxes are also different