TDS on Freight payment

Mr.Anil Kalia

If  the asessee does not deduct tax at source on the bills issued by the Union's Bill Book, the assessee has to first convince his tax auditor regarding the facts and circumstances.

At the time of scrutiny the Assessing Officer will propose to disallow the impugned payments by invoking the provisions of section 40.  Then the assessee has to provide all material and confirmations from each truck owner and also from the union to the effect that though the bills are issued on union's bill book, in fact the impugned amount belongs to the truck owner.  The assessing officer may or may not accept the assessee's explanation.  Then the assessee has to prefer an appeal.

Why I have explained the above, the facts and circumstances of your case are debatable. 

Best Wishes

Sathikonda

We should consider latest amendments in regard to transporter's TDS.

Regd

Lovenish Bansal

Mr.Lovenish Bansal

There is no solutionj to Anil Kalia's problem in the new amendments also.  Please go through new section 194C which has come into force with effect from 1-10-2009.

Best Wishes

Sathikonda

Dear All

I have today come across a case law which may be useful in the situation we discussed herein.  I am attaching the case law.  Let's continue the discussion in the light of the case law.

Best wishes

Sathikonda