Respected Sir,
In our partnership firm located in Kerala, we are directly paying Transportation Charges to the Road Transporter for carriying goods from Gujrat, should we deduct TDS?
ARJUN ASHOK
(CA Industrial Trainee)
(125 Points)
Replied 04 January 2014
if the payment made is greater than Rs.30,000/- per bill or Rs.75,000/- in agregate then you should deduct tds under sec 194C.
AYOOBKHAN
(Accounts Officer)
(52 Points)
Replied 04 January 2014
Thanks Arjun Sir, but our Transporter provides PAN, even deduct TDS?
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 04 January 2014
It is Sec. 194C(6): "(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum."
ARJUN ASHOK
(CA Industrial Trainee)
(125 Points)
Replied 04 January 2014
If recipient is Transport Operator and furnishes PAN then no tax is to be deducted. you should pay full amount without deducting TDS.
TRINATH
(Accounts)
(919 Points)
Replied 04 January 2014
| Originally posted by : ARJUN ASHOK | ||
 |
If recipient is Transport Operator and furnishes PAN then no tax is to be deducted. you should pay full amount without deducting TDS. |  |
agree\
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 06 January 2014
what is logic of furnishing the pan number in transport invoice for non deduction of tds ?
CA KARAN MAINI
(Practising CA)
(106 Points)
Replied 06 January 2014
Saurabh Anokhchand Jain
(Chartered Accountant)
(1043 Points)
Replied 06 January 2014
Finance Act 2009 has made an important change in respect of applicability of TDS on transport contractors.
Section 194C has been replaced and the following two sub sections provide for non deduction of TDS on transport contractors
(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
(7) The person responsible for paying or crediting any sum to the person referred to in sub-section (6) shall furnish, to the prescribed income-tax authority or the person authorized by it, such particulars, in such form and within such time as may be
prescribed.
“goods carriage” means any motor vehicle constructed or adopted for use solely for the carriage of goods, or any motor vehicle not so constructed or adopted when used for the carriage of goods,”
Condition for NIL deduction
• Amount paid/ credited on or after 01-10-2009
• To a contractor during the course of business of plying , hiring or leasing goods carriage
• If the contractor furnishes valid PAN
Whether to include such transactions in eTDS statement
A question arises if it is necessary to show such transactions in eTDS statement.
• One way would be show these transactions in eTDS statement with normal rate and TDS amount as Zero.
• Another way is not to show such transactions in eTDS statement, as a separate form will have to be filed in any case.
ANUBHAV
(STUDENT)
(26 Points)
Replied 08 January 2014
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