Whether TDS on Freight paid to Transporters comes under sec 194C (payment to contractor) plz reply N also tell me about the tds rates which r applicable to freight.....
Whether TDS on Freight paid to Transporters comes under sec 194C (payment to contractor) plz reply N also tell me about the tds rates which r applicable to freight.....
As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.
This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
Tds rates are 2% for others & 1% for Ind. and HUF
Hii Nuba,
Kumar Gaurav gives the Right answer.......
But if Transporter Doesn't furnish the PAN no. then TDS rete will be 20%.
So check it while doing audit,..
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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