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Tds on transport charges

venkata sasidhar B (Dy Manager) (34 Points)

06 January 2012

Our company which is in the field of importing and exporting goods pays transportation charges in the following manner.

1. Pays transportation charges to transport contractors who are corporates - whether TDS is to be made though PAN number is given by such corporates.

2. Reimburses Transport charges to Clearing and forwarding agents who are also Corporates - Whether TDS is to be deducted for such payments by us.

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9 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 06 January 2012

in both cases the TDS is applicable,

if its reimbursement, then look if threshold limit exceeds or not, and if exceeds then you have to deduct from transporter directly or from agent.

Ramanuj (Accountant.) (834 Points)
Replied 06 January 2012

if any transport contractors provided Pan No. to Deducter then TDS is not applicable. Transport contractors means Tranport on truck on road. here is not difine which type of service provide. if trasport by truck than tds is not applicable.

if transport contractores service provide as air freight , rail freight , then tds is applicable.

thanks

2 Like

VENUGOPALAKRISHNAN P K (ACCOUNTS OFFICER) (33 Points)
Replied 06 January 2012

Yes . Mr.Ramanuj is correct. For transport contractors who have provided PAN , TDS need not have to

be deducted.

Regards

Venugopal

Ramanuj (Accountant.) (834 Points)
Replied 07 January 2012

Thanks Mr. Venugopal. But its question is not define which type service provided tds is applicable or not.

Thanks

Ragards

Ramanuj

venkata sasidhar B (Dy Manager) (34 Points)
Replied 10 January 2012

thank you.

Dilip (Working) (408 Points)
Replied 17 February 2012

Hello to all,

Can you please clarify whether ownership of vehicle is necessary for transporter. If transporter is taking vehicle on rent from someone than will he / it be called transporter with valid pan and will enjoy the 0% TDS rate benefit. Please clarify...

Rupesh Shrivardhankar (B.Com) (21 Points)
Replied 29 May 2013

Hello to all,

Sir, tell me Transport dumper loading Contractors ( JCB & Poclain owner) are applicable for TDS or not? They are doing job of Cargo Loading in Dumper.

Regards,

Rupesh.

savanth (accounts executive) (22 Points)
Replied 03 August 2013

Dear Sir,

ours is a infrastructure company i working as executive accts we use to engage transportation for sending material from vendor stores to our sites . so the bill is raised by transport company for rs. 5,64,975 and in work order we have mentioned about service tax as extra wil be paid by us and he has written in his invoice as service tax payable by Consignee and there is no break up of service tax in bill and there is only PAN number on the bill of transporter and has not mentioned Service tax number .

now in the above details i have some doubts as below :

1 . wheather can we deduct IT TDS @ 2% on transportation .

2. and can we take the Input credit on service tax amt in reverse charge mechanism

3. what are all the points to be verified in invoice while we take input credit on transport bill

4. what are all documents to be collect from transporter

NOTE : kindly give a detailed explaination with entry also Plszz....