TDS on Transit Mixer Contract

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