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TDS on Transporter

Mukesh Katara (Account manager) (533 Points)

09 April 2019

If any transport contractor who does not have any own vehicle & provides vehicle through a sub-contractor and raising bill in his own firm name & further submits a declaration that he does not have any own vehicle. Kindly confirm do we have to deduct TDS or not?

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7 Replies

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 09 April 2019

In my opinion, TDS is required to be deducted u/s 194C @ 1%/2% as the case may be, as such transporter can't opt for Sec 44AE as he have no vehicle

Mukesh Katara (Account manager) (533 Points)
Replied 09 April 2019

dear sir

kindly check below link if no direct agreement with transporter than tds not applicable

https://thetaxtalk.com/2018/10/20/applicability-of-tds-u-s-194c-towards-lorry-charges-paid-to-different-truck-owners-for-transportation-of-goods/

Harshit Baheti (344 Points)
Replied 09 April 2019

Reply given in another query of yours

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 09 April 2019

Mukesh ji, the case you referred have different facts and, wef 01/10/2009, Payment against leasing goods carriages is not liable for TDS as per Sec 194(6). Further, Sec 194C(6) only applies to those assessee who are in the business of plying, hiring or leasing of goods carriages & in your case the contractor is acting as facilitator and liable for TDS u/s 194C subject to satisfaction of other conditions in it.

Further, Invoice issued by such contractor will be treated as Contact whether you have entered into any separate contract or not.

Hence, in my opinion you should have to deduct 1%/2% as the case may be u/s 194C

CHAVDA SANJAY MANSUKHBHAI (proprietor) (402 Points)
Replied 09 April 2019

in my opinion , that you can received declaration from your transporter that transporter has not more than 10 truck , you can not deduct tds as declaration received from transporter.

0 zero is also less then 10 truck.

2) is transporter return filed or not filed. if the return has not filed by transporter . there is no revenue loss so tds not deducted.

if return filed , please ask copy of return and check to file return 4s now itr 4 in under section 44AE tds not deduct.

and itr 4 file now itr 3 tds should deduct.

CA Ankit Garg (MD | Genuine Filings) (781 Points)
Replied 09 April 2019

Sanjay ji, Please tell me if someone have zero truck and as you said zero is less than ten, how will he is going to compute Taxable Income u/s 44AE, as according to Sec 44AE his income will be zero though practically his income will be more than zero