TDS deduction on payments to transporters

If PAN is quoted by the transporters, then deduct TDS @ 1% or 2% as applicable, and if not quoted then deduct @ 20%. A declaration is required if the transporter is not owning more than 10 goods carriage at any time during the previous year, and the deductor needs to collect it along with copy of PAN of the transporter as per board circular no. 19/2015, dated 27/11/2015.

U may follow the following format:-

Declaration under section 194C(6) of the income tax act 1961

No................. (to be provided by payee) Date.................

From.............................(Name & Addree of the payee)

To..................................(Name & address of the payer)

The freight/transport charges amounting to Rs................ for transportation of goods by goods carriage having registration number.............................. may be paid or credited to my account without deduction of TDS u/s 194C, of the Income Tax Act 1961. I/We......................... in the capacity of.............................. hereby declare that I/We do not own more than 10 goods carriage and also did not own more than 10 goods carriage at any time during the period from 01/04/....... to ........... My PAN is................. I hereby enclose a self - attested photocopy of my PAN card.

Place............................ Signature of the person making declaration.....................................