TDS on Goods Transport need not be deducted. My question is what constitutes "Goods Tranport".
Do courier and other transport services come under this categort? Does TDS need to be deducted on payments to them?
TDS on Goods Transport need not be deducted. My question is what constitutes "Goods Tranport".
Do courier and other transport services come under this categort? Does TDS need to be deducted on payments to them?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 29 May 2012
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.
Yogesh kumar
(Student)
(56 Points)
Replied 29 May 2012
Dear
Pl give exm like amount bill 15000
on bill amount 85000
& amount cross in fifth bill in a year amount of 75000
thanks
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 29 May 2012
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.
Ashish Bhalara
(Sr. Account Officer)
(345 Points)
Replied 29 May 2012
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.
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 29 May 2012
| 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
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 29 May 2012
Agree with above
Student
(b)
(875 Points)
Replied 29 May 2012
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.
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 29 May 2012
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
Rajendra Jain
(CA Practice )
(16 Points)
Replied 30 May 2012
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 Practice )
(16 Points)
Replied 30 May 2012
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
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 30 May 2012
| 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
Rajendra Jain
(CA Practice )
(16 Points)
Replied 31 May 2012
pls provide the details of case law which has allowed or justified this type of transactions ?
rajendra jain
CAclubindia
