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Tds on trasport business

CA SONIYA AGARWAL (self practice) (3005 Points)

27 December 2013

how is tds charged on transport busines i saw 26as of one my client in which some has deducted tds and some has not , why so ?? , i saw his bank statement collection was around 26 lakh but in 26 as amount credited/paid was only about 8 lakh how could it be possible . i want to know how road carrier business works.

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8 Replies

Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)
Replied 27 December 2013

Dear sonia,

Transportation is exepmted under tds but if transportation done with contract agreement with any transport company for material supply and receive for specific period, then tds will be applicable under 194C (TDS on contractor)

NOUFAL (ACCOUNTANT) (762 Points)
Replied 27 December 2013

i agree with lalit.............

CA SONIYA AGARWAL (self practice) (3005 Points)
Replied 27 December 2013

What is the answer of my second querry 26 as shows payment credited of 8 lakh and in bank statnent collection of 26 lakh

Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)
Replied 27 December 2013

during the year your client has total service provided of Rs. 26 lakh which is showing in bank statement and out of this Rs. 8/- lakh is under contract service on which tds has deducted, which is showing in 26AS.

CA and CMA Ravinder Singh (CA and CMA) (853 Points)
Replied 27 December 2013

in case of transport, quoting of PAN is mandatory....if PAN is not given then TDS would be deducted @ 20%........

now in the tds return, deductors are required to furnish details of charges paid to transport co. even if no tds has been deduccted.

here is the answer to your query....as no tds is deducted, therefore mostly assessees dont file the information of charges paid to transport co. while some other assessees complies with these requirements.....

Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)
Replied 27 December 2013

yes I agree with ravindra singh, in this case simply look the tds amount on form 26AS, is there tds deducted @ 20% on 8 Lakhs.

Ritik Zaveri (Article Assistant ) (26 Points)
Replied 27 December 2013

You should prepare a reconciliation for the same and then from the difference select the material amounts which is not included in 26as and ask for the reason from transporter that why he has not paid the TDS amount?

sujeet (properitor) (41 Points)
Replied 28 December 2013

If I am sending certain goods FOR to my dealers. Where the freight is paid by my deaer but freight amount is adjusted in the total billing. In one year freight amount exeeds 10 lakh . I wanted to know if tds is charged or filed in this case