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TDS on Transit Mixer Contract

Harismohan (Accountant) (177 Points)

18 December 2009

Dear all

I am accountant of a private transport operator running the transit mixers in the all over india. My doubt is whether tds not applicable if pan is provided to the person who are deduction of TDS. That is NIL TDS is applicable or not. My another question is some deductors deduct 1% TDS for works contract but some deductors deduct 2 % TDS in nature of Hire Charges. What rate is applicable to ours. Please Clarify and also we are hiring the pumps for lifting concrete to construction work. What is rate of TDS applicable. Please clarifty the same and whether Transit Mixer business service Tax is applicable or not. Please clarify my questions as early as possible.

Thanking

S.Mohan

Accountant

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1 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 03 February 2010

Mr.HarisMohan

From 1.10.2009 onwards as per sub-section(6) of section 194C no tax is to be deducted at source if the transporter furnishes his Permanent Account Number to the person to whom he has provided his transport services.

Regarding hiring of pipes if it is only hiring of pipes and if the pipes fall under the catagory of machinery or plant or equipment the rate of TDS is 2% (Two Percent) as per the provisions of section 194I.

If you hire pipes with manpower for executing a particular work it falls under the ambit of section 194C. In such a situation you have to deduct tax at source @ 1% (one percent) if the work is executed by an individual or Hindu Undivided Family. You have deduct tax @ 2% (Two Percent) if the work is executed by a person other than an Individual or Hindu Undivided Family. Eg. Firm, Company, Trust, Association of Persons, Society etc.,

Hope I have clarified your doubt.

Best Wishes

Sathikonda