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Pls help.. URGENT

(Guest)

HI HAPPY NEW YEAR TO ALL.

I AM CONFUSED REGARDING RECENT PROVISION OF TDS U/S194C WHERE IF ANY TRANSPORTER WHO HAS SUBMITTED PAN IS NOT LIABLE FOR TDS.BUT I HAVE OBSERVED IN CASE OF A COMPANY WHERE TDS IS DEDUCTED @ 2%.THE TRANSPORT CO.WHOSE TDS ARE DEDUCTED ALSO DO NOT OBJECT.IS THIS CORRECT? OR HAVE I WRONGLY INTERPRETED THE PROVISION??

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11 Replies

Ramesh Shah (CA Final) (228 Points)
Replied 01 January 2011

Hi,

Any transporter whether co. or others submit the PAN is not liable for TDS.

Sandeep Pandey (CA FINAL) (1306 Points)
Replied 01 January 2011

Originally posted by : Ramesh Shah
	Hi, Any transporter whether co. or others submit the PAN is not liable for TDS.

Agreed

(Guest)

but if they are not liable for tds.then why are not objecting on deduction of tax??

ASHU SHARMA (CA STUDENT) (194 Points)
Replied 02 January 2011

Yes as per provision of u/s 194C if transporter furnishing the detail of PAN then no tds shall be deducted.But practicaly most of parties who are liable to pay freight deduct tds on freight and transporter do not object.I heard from my CA if they do not deduct TDS of transporter then Assessing officer can demand details of all bill and transaction with such transpoter.So Most of CA sggest their client to deduct Tds on Freight regularly like previously even though there is no provision u/s194C.

ajay goyal (ca student) (80 Points)
Replied 03 January 2011

YEAH, AS PER PROVISIONS OF U/S 194C IF TRANSPORTER FURNISHING PAN DETAILS THEN NO TDS SHALL BE DEDUCTED.BUT AS IN YOUR CASE THE PARTY HAS DEDUCTED TDS AND TRANSPORTER HAS NOT REACTED ON DEDUCTING TDS.REASON FOR NOT REACTING MAY BE THAT TRANSPORTER HAS DEPOSITED LESS ADVANCE TAX FOR THE PERIOD AND THINK DEDUCTED TDS AMOUNT WILL BE COMPENSATED IN ADVANCE TAX.

wahidkhan (tax practitioner) (23 Points)
Replied 03 January 2011

Dear sirs,

If in process of accounting and filing of incometax returns, we suddenly came to know that one of my property was not taken into account from last 3 to 4 years ago. Then how will I take that entry to books of account ?. If i do so, whether the ITO will ask that question at time of scrutiny, or will that entry in books of accounts leads to any addition of income or taxable.

Please guide me.

Thanks with regards

Gopal Sengar (CA STUDENT) (531 Points)
Replied 03 January 2011

hi ritika

u/s 194c if any transporter whether individual/huf or other quotes his pan. the nill rate will be applicable.

In your Case

tds deducted of a transporter Co. and also not objecting by co. what is the problem?

Excess tds amount will be refunded or no requirment to deposite advance tax.

(Guest)

sir its not a case of one transport co. there are around 50 transport co.whose tds has been deducted.and not even a single co.objected??

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 January 2011

No TDS on Transport Contracts, if PAN is provided

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.

This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.

Applicability
This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.

New returns for such information
Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C. CBDT would be prescribing the format for such return and the methodology to file such return shortly. However it is expected to be one time activity for the Deductor to furnish these details after 31/03/2009, containing the information of all 6 Months.

End date of such provision
Even though the date 31/03/2010, the end date for this provision is not specified in amended 194-C section, the Financial budget documents of 2009, clearly indicated its termination by such date. It is expected that the forthcoming finance act 2010, will amend the section by removing the sub sections 6 and 7 of 194C.

Gopal Sengar (CA STUDENT) (531 Points)
Replied 03 January 2011

okey but Company can object here for taking tds deducted.

in ur case

Answer 1

company is not objecting whether one co. or around 50 because company has no problem for deducting tds. it can claim against such tds.

Answer 2

there is not update employee like you

AMIT KUMAR (Artical Assistant) (31 Points)
Replied 03 January 2011

Originally posted by : ritika
	HI HAPPY NEW YEAR TO ALL. I AM CONFUSED REGARDING RECENT PROVISION OF TDS U/S194C WHERE IF ANY TRANSPORTER WHO HAS SUBMITTED PAN IS NOT LIABLE FOR TDS.BUT I HAVE OBSERVED IN CASE OF A COMPANY WHERE TDS IS DEDUCTED @ 2%.THE TRANSPORT CO.WHOSE TDS ARE DEDUCTED ALSO DO NOT OBJECT.IS THIS CORRECT? OR HAVE I WRONGLY INTERPRETED THE PROVISION??

Thanks, same to you

It is illegal to deduted TDS.