We, (as state government) have taken transport service from STATE ROAD TRANSPORT CORPORATION/municipal corporation's transport facility to migrate labour from one state to another during lock down in that case we (as state govt.) have to deduct TDS on incometax for making transport payment to Govt. State transport ?
please provide any authority in case of apply/not apply TDS in that specific case
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I.T. TDS apply on transport service of STATE GOVT. ROAD TRANSPORT CORPORATION
Replies (2)
Section 194C applies in your case.
you being the specified person are covered under this section and any payment made by you i.e. state government is applicable to TDS u/s 194C subject to payment limits as under
1. annual payment exceeds Rs. 1,00,000/-
or
2. one time payment exceeds Rs. 30,000/-
sub section 194C(6) provides for exemption if contractor has less than 10 such transport vehicles which is unlikely in your case.
so rate would be 2%.
please note for payments made after 14th May the rate is 1.50% (i.e.75% of 2%).
you being the specified person are covered under this section and any payment made by you i.e. state government is applicable to TDS u/s 194C subject to payment limits as under
1. annual payment exceeds Rs. 1,00,000/-
or
2. one time payment exceeds Rs. 30,000/-
sub section 194C(6) provides for exemption if contractor has less than 10 such transport vehicles which is unlikely in your case.
so rate would be 2%.
please note for payments made after 14th May the rate is 1.50% (i.e.75% of 2%).
Thank you sir
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