Greetings!
We are using crane services for loading the goods. we deduct tds under sec. 194C for the same. Now, the Crane service provider gave us declaration for non-deduction of TDS which is used by the transporter who are using not more than 10 vehicle of goods carriage. Is the declaration form applicable or not for crane services which is used to loading the goods?
thank u
1. According to sec 194C TDS will not be applicable where at any point of time during the previous year assessee owns not more than 10 goods carriage.
2. "goods carriage" shall have the meaning assigned to in sec 44AE. As per sec 44AE, the "goods carriage" shall have the meaning assigned to in sec 2 of Motor Vehicles Act,1988.
3. According to sec 2 of Motor Vehicles Act 1988, it reads as
“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"
From the above definition, we can conclude that goods carriage are those which are exclusively constructed for the purpose of carriage of goods. Example: Lorry, Trucks, etc.
4. In your case, it is a crane and cranes are used not for carriage of goods but for loading and unloading of goods. Hence, cares will not be considered as goods carriage.
5. The declaration is not valid for crane services.
Please correct me if the above interpretation has an alternative view.
Sir,
Thank you for considering my query? So answer was enough explanation what query i had. It Is so admirable. thank u so much.
Regards,
Sharmila.S
CAclubindia
