Tds on goods transport

Transport of goods is considered as an contract because as per the definition of work given in 194C it also includes transport of goods.  Refer the explanation given below:

(iv)   “work” shall include—

        (a)   advertising;

        (b)   broadcasting and telecasting including production of programmes for such broadcasting or telecasting;

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

        (d)   catering;

        (e)   manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer,

                      but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.]

Thus TDS needs to be made on the amount if single bill exceeds 30k or aggregrate bills exceeds 75k.

Goods transport means if any goods are being transported through an transport agency such as say in case of an co carrying on the business of manufacturing shirts, so it requires cotton.  the cotton needs to be transported from the place of the person supplying it to the place of factory to manufacture shirts.

In case of courier, the courier co's main job is like that of postal service, only thing is that instead of the postal agency the courier co whihc is private co provides the service.

Dear  

Pl give exm  like amount bill 15000    

on bill amount  85000

& amount cross in fifth bill in a year  amount of   75000

thanks

As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.

NO COURIER SERVICE WILL NOT COVERED.

Dear sir, please know me that is TDS applicable of below bill detail.

I get the bill of Director Travelling of Rs.121122

I get the bill of Trv. Ins. of Rs.8032

I get the bill of Visa fee & chrgs of Rs.12960

Kindly know me the TDS term of above bill.

Thanks in advance.

Originally posted by : Ashish Bhalara
	Dear sir, please know me that is TDS applicable of below bill detail. I get the bill of Director Travelling of Rs.121122 I get the bill of Trv. Ins. of Rs.8032 I get the bill of Visa fee & chrgs of Rs.12960 Kindly know me the TDS term of above bill. Thanks in advance.

If the commission/service charges is separately shown in the bill then tds is to be deducted only on such comm/service charges subject to threshold limit of Rs. 5,000/- u/s194H.

As far as other expenses
 

Agree with above

agree with the explanation on GTA.

About TDS,I think if the bill mentions both ticket reimbursement & comm as well, then TDS is to be  deducted on  the total bill value and not only  on service charge. Best practice ask the SP to submit separate bills.

There is a decided case law which states that even a single bill mentioning separately the reimb. amount and the service charge or comm charge amount is acceptable and therefore for Income Tax Purpose as well as service Tax purpose amount separately mentioning service charge will be taken into consideration.

Reimb can be completely ignored and there is no need to obtain a separate bill.

Regards

can u pls provide the case law details justifying the boll consolidated for reimbursement and other for no deduction  of tds on reimbursement exp.

can u pls provide the case law details justifying the boll consolidated for reimbursement and other for no deduction  of tds on reimbursement exp.

rajendra jain

ca

Originally posted by : Rajendra Jain
	can u pls provide the case law details justifying the boll consolidated for reimbursement and other for no deduction  of tds on reimbursement exp.   rajendra jain ca

I have never mentioned the term "consolidated Bill"...

Single Bill showing two separate figures viz. Reimbursement amount and Service Charge/Commission is as good as two separate bills. In other words there is no need to raise two separate bills for reimb. and commission, single bill showing two separate figures will do. Care shoud be taken that Reimb expenses should exactly match with the corresponding figure in the bill raised by creditor.

Regards

pls provide the details of case law which has allowed or justified this type of transactions ?

rajendra jain