where an organisation is using taxi services from from a xyz tour & travel, whether organisation should deduct tds?
as per tds rule, in case of transporter, tds is not to be deducted if PAN is provided by the transporter. please clarify me -
whether taxi services is covered within the definition of 'transporter' and whether tds should or shouldnot be deducted??
Hi Mukesh,
Section 194C states that no tax is required to be deducted (on furnishing PAN) in case of payments towards plying, hiring and lease of goods carriages. This refers to vehicles carrying goods and not passengers. Hence, you are required to deduct tax...
TAXI SERVICES ARE NOT INCLUDED IN TRANSPORT OPERATOR SERVICES...HENCE DEDUCT TDS @ 1% OR @ 2% AS APPLICABLE
No, taxi services is not covered within the definition of 'transporter' and tds should be deducted u/s 194C.
CAclubindia
