TDS on Transportation Charges

if transporter having the pan then no need to deduct the tds

sorry sir but u have not understood my question...plz luk after it again ..

As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.

This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.

Applicability
This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.

New returns for such information
Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C. CBDT would be prescribing the format for such return and the methodology to file such return shortly. However it is expected to be one time activity for the Deductor to furnish these details after 31/03/2009, containing the information of all 6 Months.

Rate of TDS shall be if PAN is not provided from 1.10.2009 to 31.3.2010

1. 1% if the payee is individual or HUF.
2. 2% otherwise

After 31.3.2010 the rate shall be 20%.

End date of such provision
Even though the date 31/03/2010, the end date for this provision is not specified in amended 194-C section, the Financial budget documents of 2009, clearly indicated its termination by such date. It is expected that the forthcoming finance act 2010, will amend the section by removing the sub sections 6 and 7 of 194C.

so it means that here TDS should be deduted at the rate of 20% ?

yes it was had to be, but if TDS is dedcucted @ 2% then simply show the same as payment to contractor, ( traport payment is also a contract) as its one time mistake.

actually i m auditor of said co. as per 44 AB ...so should i report the above matter in 3CD or not ?

auditor is a sheltor providor to client for which he gets professional fees, 

check whether he has done the things in ignorance or willfully............

if the incident has been happened by mistake then let the department find it ( which is not to be done now, as in case of dispute the department had to notice for TDS return error) so its not a mistake which is to be reported in audit report. 

but you have to guide the person responsible to keep themself updated and not to repeat such incidents, as the rectification of such mistakes takes too much energy and mental agression.

so, the person doing transporting is also come to under contract only.

i have the query for 2008-09  that not deducted TDS from Transportation

no, tds should have not been deducted as pr finance act,2009

Hi,

i would like to know that in Transport Bill (Tempo) Amt  form Rs. 100 to 10,00,000 Having PAN ,  TDS  wll deduct or not?

pls guide

Asha
 

Hi

I have a query for TDS on Transportation charges paid through App.

Generally transportation charge bills are received through registered mail ID, if booked through App. In this case if the payment exceeds threshold limit of 100000 (U/s 194C), whether company is required to deduct TDS. If yes what should be the procedure to deduct TDS because in case of booking through App we need to pay the full amount to avail the service.

Thanks

Prakash