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Tds deduction to an transport agency

927 views 1 replies

SRIKAR REDDY

CA -FINAL

28 Points Joined March 2016

A Ltd is a transport company indulges in the business of transport of goods(both household and commercial ) having its own vehicles.Apart from its vehicles the A ltd hire vehicle from other transport agencies for the transportation of goods and it pays hire/freight charges to the agency. 1. Should the A Ltd deduct TDS on payment of Hire/Freight charges? 2.This is a case of A.Y 2012-13 where TDS provision of deducting to transport agency having more than 10 heavy vehicle is not applicable. Please suggest me should A Ltd need to deduct TDS to the agencies (for A.y 2012-13).If TDS is need to be deducted at what percentage and section the A Ltd should do. Thankyou.

Replies (1)

CA Devaraju Narisetti

320 Points Joined July 2014

As per the Facts Given by you,

it may fall under

Section 194C- In case A ltd ( As stated By you), and Transport Agencies from whom The A ltd has Hired the Vehicals and there is formal Agreement / contract, Then this Section applies Rate is as u know - 2% OR

Section 194I- This Section comes in to picture when the Renting of Building, Plant and Machinary Etc, the situation narreted by you may fall under This section as well iin the absence of the Contract. Rate under This section is 2% w.e From 2009.

and apply this to section to your Situation, and in case i am Wrong Please guide me as well.

Thanks

Deva