Hi,
TDS rates on transporter is made NIL if they quote PAN, now my query is If the transport is done by SHIP from one port to another port within India,
In this case whether we have to deduct TDS on transport by waterways?
Is the NIL rate is only for Transport by road or it is applicable for all types of transport?
Dear Ashish,
It is just a matter of interpretation.Section 194C defines transport operator as the person who is in the business of plying,hiring and leasing goods carriage.
Ship is a goods carriage.Tansporting the goods from one port to the other is plying.Further the act does not state any exclusion of the ship transporters from the applicability of section 194C.
In my opinion NIL rate of tax should apply to ship transporter also.
Regards,
Fatema
Hi,
I believe, the payee is liable to deduct tax in respect of plying through Ship. As per Section 194C, the meaning of Goods Carriage shall be the meaning as assigned in explanation to Section (7) of Section 44AE. As per the said explanation, the words goods carraige are said to be those as defined by Motor Vehicles Act, 1988 and the said statute covers the regulations in respect of vehicles run on the road only.
Further Study of provisions of sub-section (13) and (28) of Section of MV Act makes it clear that it applies only to vehicles which are run on the roads.
Hence, I believe, payment for transportation through ship are liable for tax deduction U/s.194C.
Regards/Dharma
CAclubindia
