Tds on transport charges

TDS 1257 views 7 replies

Dear Sir,

TDS from payments to transporters–Section 194C

Previously, payment to transporters carrying on the business of plying, hiring or leasing of goods carriages is not liable to withholding tax if the transporter furnishes her/his permanent account number to the payer. It seems that the intention of having this provision was to exclude small transporters from the rigours of TDS provisions. But because of the way the section was drafted, all transporters were excluded from the TDS provisions if they had a PAN.

With a view to bring back the big transporters back into the TDS fold, from 1st June 2015 onwards, this exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. Such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN.

If we pay freight to a Transport contractor who is hiring hundreds of trucks from truck owners and he is not owner of the truck. Is he liablie to be deducted TDS.

Thanks & Regards

Ashok Kumar Modi

 

 

 

 

Replies (7)

As you say he is not the owner of such trucks, so obviously tax has to be deducted at source, I think.

What the format for Annexure given by Truck Owner or Transporter

Dear Ashok......either the trucks owned by the transporter or hired by him , should be included in the limit if 10 trucks, hence in ur case u have to deducted TDs on the payment

He must be the owner of the trucks as per sec. 44 AE.....so if he is hiring than obviously TDS shall be atracted.

MOREOVER THE CONTRACTOR WHO IS HIRING SHALL ALSO BE LIABLE TO PAY SERVICE TAX.

What is c & f agent stand in this regard..?
He is the person who will make an arrangment for transportation and get commission from vehicle owner and the total fair is paid to owner...

Dear Mr. Kalpesh,

In our case neither he is paying full payment to owner nor he is getting commission. He has negotiated rate from us and hires the truck from somewhere for us.


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