TDS

TDS is not be deducted in case of transporter payments if the person discloses his PAN Number. If not, 20% has to be deducted.

as per amendment made by finance act 09 tds is not required to be deducted in case of transporters if they furnish their pan but if not then rate of tds is 1% for individual and 2% in any other case for f/y 09-10 and this rate will be 20% for f/y 10-11 if they not furnish their pan.

regards

tarun rustagi

monetary limit is not relevant if they furnish their pan but if not the rs.20000 for single contract and rs.50000 in case of multiple contract.

regards

tarun rustagi

Dear tarun ji,

Transaction Limit defined for contractors, in single transaction Rs.20,000/- (if contractor charges Rs.20000/- or more in single invoice) or Rs.50000/- as annual transaction limit.

Dear Radha

for transports contractors no need to deduct TDS if they provide PAN number.........if not 20% has to deduct..............

Dear Radha,

CMA  Bhasker V is correct. But you please update yourself, threshold  limit for TDS is extended in Union budget 2010 as below.

194C -contractor >= Rs. 30,000/- (earlier it was Rs.20,000/-), and for multiple transaction together, it is Rs.75,000/- (earlier it was Rs.50,000/-).

*These amendments are proposed to take effect from 1st July, 2010

if a transporter is having a goods carriage transport and they giving a PAN no. then you have not deduct the TDS from 1.10.2009. other wise you can deduct TDS @ 2% for Company others 1%

Records

KARTHIK.K