Dear Friends,
We are hiring one vehicle from ABC Travels (for passenger). Is it coming under transport means come under Tds on contract. We are paying partly. So Shall we deduct tds on contract @ 1% or 2 % or nil. With effect from 01 Oct 2009. Actualy the travels agent having PAN and Service tax Regn no also. Please give details.
Advance Thanks
Urs
Sathis
As the usage is for the purpose of carring employee/ passenger you have to deduct under 194C. and
If the Travel Agency having PAN No. in the name of Individual the TDS rate is 1% ,
If it is a Company / Firm means the TDS rate is 2%, w.e.f.01.10.09.
Correct me if iam wrong.
hi..whether the provision of tds is applicable to transporters or on transport contracts???
i have read everywhere as transport contracts....kindly tell me...
If the Transporter is Goods transporter and if quote their PAN No. the TDS rate is NIL. Otherwise, what i have mentioned will be applicable.
Please refer the attachment.
tds on transporters is nil if they provide PAN
transporters in respect of income tax and service tax refers to the plying, hiring and leasing of goods.
as the contract is for passengers, tds shall be deducted u/s 194C
TDS has to be deducted U/s 194 c ,as it is a contractual bill, as it is transport of passengers and not good. so TDS of 1% if individual and 2% for companies will be applicable.
In case of others if PAN is not Quoted TDS @ 20% is deductible but in case of Contractor TDS @ 1 or 2 % is deductible if PAN is not Quoted.Please explain whether this is correct or not.
CAclubindia
