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Tds on transportation

Hardik (ASST. MANAGER) (87 Points)

24 March 2012

Dear All,

My query is that, does transportation service includes Courier Service?

& if we are using courier service for transporation of material (say Sample Piece), does it mean we have avail transportation service?

whether this attract TDS?

Regards,

Hardik

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3 Replies

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 24 March 2012

yes.. courier services are liable to TDS as per section 194C.

This happens only when an assessee undergoes a contract with the courier company and the bulk payment would be liable to TDS subject to the limitations of section 194C

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 24 March 2012

Yes...

When you are sending samples alongwith Couriers...they are attracting TDS provisions u/s 194C.

Hardik (ASST. MANAGER) (87 Points)
Replied 25 March 2012

Dear Both,

Thanks for your reply.

But as you aware tranporter having valid PAN does not attract TDS, so in this regard I would like to know does courier service in fall in category of Transportation?

from your above reply it seems that it is not fall in category of transportation, so my question is that if we are using this couvier service for material delivery (i.e. transportation ) does it attract TDS?

Regards,

Hardik