Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

TDS Not Decuction

TDS 1171 views 5 replies

Sunil Dhiwa

Freelance for Tally & Accounts

103 Points Joined October 2007

Dear All

If A Trasnporter Hire Trucks of other transporter

in this transaction is he lible for TDS , if he liable then what rate he has to deduct or if he not paid the TDS what is the income tax liability .

waiting for replys

Replies (5)

Amit Sharma

article

2677 Points Joined November 2007

It will come under sec 194C of IT act of 1961 and rate at deduction 2.244%

Irshad

Article

1426 Points Joined September 2007

Expecting few more replies....

If the payment made to hime exceed Rs 20,000 ,Tax has to be deducted u/s 194 C and rate will vary with type of contractee and payment made to him. For ex: Person: Indl,HUF,BOI& AOP, payment ,payment made morethan 10 lakhs - 2.266 % and lessthan 10 Lakhs -2.06%. Person : Firm Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06% Person:Company Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06%

Irshad

Article

1426 Points Joined September 2007

Expecting few more replies.

M.Sriram Shenoy

CA Final

814 Points Joined January 2008

Yes.TDS has to be deducted as it comes under 194 C. When a transporter hires a truck from another transporter, it is a contract to use that truck for a certain period (usually definite), for which monetary payments are made on an agreed basis.This agreement is classified as "Contract". Such payments are subject to TDS. As regards rates of TDS, its been answered by Mr.Sundararajan.