tds on transportation

Section 194C of the Income Tax Act, 1961 states that any payment to a transporter is subject to a Tax Deduction at Source (TDS) at the rate of:

1% in case if the payee is an Individual or a Hindu Undivided Family, and

2% in case of other payees (i.e. partnership firm, company, trust, body of individuals or association of persons)

In case, if such payment exceeds Rs. 30,000 per contract or aggregate of such payments of contracts in a financial year exceeds Rs. 100,000

very much thanks Varun ji

from 1st June, 2015 only transport operators who owns ten or less goods carriages at any time during the financial year is allowed such exemption. Transport operator has to furnish a declaration to this effect to the person paying him to get such exemption.

i agree with Varun ji