Transporter details in TDS return FAQ....

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN")   (114215 Points)

10 November 2010  

FAQ on filing and submission of TDS Return for Payment to Transporter Having Permanent Account Number (PAN)



Since the time Government has notified vide 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.

Now here the person who pays transport Charges were facing the dilemma whether they are required to file TDS return in respect of Transport charges Paid to the Transporter who furnished there PAN.

We have summarised below few frequently asked  questions and answers which arise in respect of deduction of TDS on transport Charges and in respect of TDS return filing requirement when no TDS been deducted on Transport Charges Paid to the Transporters who have furnished their PAN


Question 1- What is the rate of TDS on Transport Charges if PAN is provided?


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

Rate of TDS  After 31.03.2010 if PAN is not provided

After 31.3.2010 the rate shall be 20%.


Question 2- What will be the rate of TDS on Transport Charges if PAN is provided on or after 01.10.2009?

W.e.f. 01.10.2009 TDS will be deducted at NIL rate if Transporter provides PAN.


Question 3- Do Assessee need to mention details of Transport Charges Paid where Transporters provided PAN and no TDS been deducted?

Yes. Assessee need to mention the same in TDS return. Government has recently release Return Preparation Utility (RPU version 2.2) and FVU version 3.0 which contains the field in respect of Transport charges where TDS been deducted at nil rate.

Transporter transaction where no deduction has been carried to marked separately as “T”. Flag “T” to be mentioned in the field for lower or no deduction at deductee detail.


Question 4- During Last Quarter I Paid only Transport charges to the transporter on which no TDS been deducted since the transporter has provided the PAN. Do I still need to file TDS return? 

Yes You need to file TDS return as department is also interested in knowing that how much you paid to the transporter who furnished his PAN to you. 


Question 5 - How to submit E-TDS return in respect of Payment to transporters when Assessee has not deducted TDS as Transporter has provided PAN?

Following are the additional steps to file E-TDS return in respect of Transport Charges Paid to transporters without deduction of TDS:-

·        In respect of TDS on transport charges where rate of deduction is nil , Assessee have to leave the following fields blank-

o       Cheque No

o       BSR code

o       Transfer Voucher /Challan Serial No.  

o       Date of deduction in Annexure-I

·        In the Column of “Date on which tax deposited" we may write last date of quarter of which we are filing the TDS return.

·         Section Code will be 94C and other columns will be entered as Zero (0). 

·         Select "T" in the column "Reason for of Non-Deduction or lower deduction of Tax of the Annexure-1.