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TDS On Transport Agent

Mukesh Katara (Account manager) (483 Points)

09 April 2019  

We have hired a truck from a union of transporter having its own PAN but no vehicle in its own name.One vehicle is provided to us by the union. As we have no oral or written contract with the vehicle owner the Section 194C should not be applicable. Please advice.


 6 Replies

ACCOUNTS08 (WORK) (142 Points)
Replied 09 April 2019

If the amount you would pay the transporter exceeds Rs 30,000 then 194c will be applicable.

Dharam (CA FINAL) (164 Points)
Replied 09 April 2019

in my view ... if union does not in the possession of any or more than 10 vehicle and union provide the declaration in writing that they are not in the possession of more than 10 vehicle any time during the previous year and also provide PAN no. then no Tds will be deducted by you .. see section 194(6) and section 44AE With explaination ... its my own personal view pls take other experts advice too

Mukesh Katara (Account manager) (483 Points)
Replied 09 April 2019

dear sir

kindly check below link if no direct agreement with transporter than tds not applicable 

https://thetaxtalk.com/2018/10/20/applicability-of-tds-u-s-194c-towards-lorry-charges-paid-to-different-truck-owners-for-transportation-of-goods/

MANOJ SHARMA (35 Points)
Replied 09 April 2019

You can deduct tax under section 194C Contractor/Subcontractor. but if the PAN Holder don't want to get deducted TDS he can furnish self declaration under 194C(6) with detailed format. same he can also provide you on stamp paper with notary public.   

1 Like

Harshit Baheti (344 Points)
Replied 09 April 2019

No he cannot furnish declaration since 194c clearly says owning upto 10 truck since he is not owning so declaration invalid and tds needs to be deducted if above threshold.
Nd how can u not have any oral contract?
Then how can there be a transaction
Contract doesnt mean series of events
Even a single event is a contract
1 Like

CA Garima Bhayana (-) (167 Points)
Replied 03 August 2019

SIR, If We have contract of transportation with transporter who not owns any vehicle then what are provisions of tds ? and if truck owner gives declaration that he not owns more than 10 vehicles then what are provision of tds ? please clear my concepts in both the cases.


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