Querry on tds on gta

TDS 573 views 3 replies

Dhananjay Bokhiria

Practicing Chartered Accountant

26 Points Joined November 2014

Dear sir,

My business is to find truck from the market and arrange it for the transportation and provide it to the party who wants to transport the goods and in response I issue lorry receipt. I dont possess any truck on my own name. I am just an agent and received commission from the truck owner. On the spot freight is paid by me to the truck owner but party issued check to me after sum time say after 2 to 3 week. Now, whether party is required to deduct TDS while making payment to me through check?? I give my PAN No. as well as declaration to party that I dont possess any truck on my name..

At the same time also advice me whether am I required to deduct TDS while making payment to truck owner on the spot?

Please help me.

Replies (3)

Kuldipsinh Jadeja

Job

357 Points Joined April 2012

Hello Mr. Dhananjay,

For the first part since you do not own the trucks in your name TDS would be deducted u/s 194C of Income Tax Act and for the second part i.e. payment to truck owners if the truck owner does not own more than 10 Trucks during the year and furnishes declaration of the same along with PAN than you are not required to deduct TDS and vice versa.

Dhananjay Bokhiria

Practicing Chartered Accountant

26 Points Joined November 2014

Thanks for your reply,

but i am not at all collect any commission from the party, I collect it from the truck owner and provide freee service to the party. then why party will deduct TDS while making payment to me?

Yash

Student CS

32 Points Joined August 2015

As per Section 192, the employer is required to deduct tax at source on the amount payable at the average rate of income tax. This is to be computed on the basis of rates in force for the financial year in which payment is made.

The Finance Act of each financial year specifies the rates in force for deduction of tax at source.

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