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TDS on Tranporters

CHETAN (CA STUDENT) (154 Points)

29 March 2010

Dear Friends,

As per Finance Bill 2009 TDS on tranporter is not applicable from Oct'09. I heard that in case of non deduction of TDS. deductor have to maitain all records related to transaction on which TDS not deducted.

I am in confussion, What is the clear concept related to this ?. Should I maintain records related to such transaction.

If this is to be file in return then in which format, Pls help me and make me confident in this area.

Thanks in Advance

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2 Replies

Ashish Sharma (Service) (1028 Points)
Replied 29 March 2010

I have read Transporter who furnish Pan No. not to deduct their TDS no further records maintain by Transporter

Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 29 March 2010

NO TDS FOR TRANSPORT PAYMENTS

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 detector.

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.

Applicability
This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.

New returns for such information
Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C. CBDT would be prescribing the format for such return and the methodology to file such return.