TDS on Freight by TRAIN
Section 194C, exempts only “Goods Carrier”
(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.
Later it defines Goods Carriages
(ii) “goods carriage” shall have the meaning assigned to it in the Explanation to sub-section (7) of section 44AE;
Section 44AE (7) Explanation says, .—For the purposes of this section,—
(a) the expressions “goods carriage”5 and “heavy goods vehicle”5 shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
Now, Motor Vehicles Act, section 2(14) says
(14) “goods carriage” means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;
Conclusion
- No TDS if contractor is giving service of “goods carriage”
- Goods carriage is for any Truck, Tempo, Auto, or the like
- But does not include
- Services of Courier companies,
- Freight by Train
- Freight by Air
- Thus, TDS will be levied on the above 3 services