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Tds on transport

RS (none) (298 Points)

13 August 2012

I have paid transport charges in cash. the payments are less than 35000 per day and the transporter has also provided his PAN but the total payment to the same transporter is more than 75000 per annum

so if pan is provided then do I have to deduct TDS?

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9 Replies

(Guest)

NO!

CA Sanjay Bag (CHARTERED ACCOUNTANT) (3340 Points)
Replied 13 August 2012

No, TDS is not required to be deducted in your case.

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 13 August 2012

YES AGREE WITH ABOVE....

NO TDS IS DEDUCTED ON PAYMENT MADE TO TRANSPORTER.

pradeep devendra lohar (final-student) (30 Points)
Replied 13 August 2012

no it is not require to deduct tds

CA Gopal Somani (Associate Consultant at Infosys Ltd.) (464 Points)
Replied 14 August 2012

As per section 194C, Income Tax Act.. 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 deductor.

Hence no TDS required to be deducted...

krishnakumar (Compliance -Manager CWA) (287 Points)
Replied 14 August 2012

As per new rules amended vide notification 16/2011 dated 29/03/2011 (b)in rule 31A, in sub-rule (4), after clause (iv),the following clauses shall be inserted, namely:- “(v)furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee; (vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.” so after this amendment we have to report following two type of entries in quarterly return (26q) compulsory 1. Nil tds on payment to transporter 2. Nil tds due to nil certificates issued by AO u/s 197 to party But Act/ rules has not been amended to incorporate third type of entries .(Nil tds due to payment less than cut off amount) There are chances in few cases that there is no payment /TDS under specific section but there are entries to be reported in above two categories . In that cases we have to create Zero value challan in etds return and have to shown deductee details against that challan .

Sudhir Kumar Kalra (Taxation Advisor) (41 Points)
Replied 15 August 2012

I agree with Mr Krishna Kumar. Even though you are not liable to deduct TDS out of payments made to transporter but you should file eTDS return in Form 26Q.

Also you should not make payment in cash more than Rs. 20000/- to one person per day.