Transporter TDS

Hello Pankaj,

If transporter furnishes the PAN no. then there will ne no deduction of tax otherwise TDS had to be deducted at the rate of 20%

well pankaj, Rajat and Deepak are absolutely correct but there is no circular to this effect. This is applicable from 1st October, 2009 after the amendment by the Interim Budget.

Section 194C has been substituted with a new section 194C with effect from 1-10-2009 by Finance (No.2) Act.

Subsection (6) of new Section 194C reads as follows:

"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor duirng the course of business of playing, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, tothe person paying or creding such sum"

The income tax act has been amended by the finance act 2009 by the above. So no notification will be available

Agree with all above.

Gud discussion. Thanx

"No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor duirng the course of business of playing, hiring or leasing goods carriages,

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Dear All

Thanks for your reply, but my qeury is in case of Individual, he submitts his PAN and LR in favour of Firm name. Then how we know he is owner of submitted LR. Practically indivual transporter uses another transporter LR and put the PAN of own. In this case what we have to do.

No TDS would be deducted from transporter if he/she quotes his/her PAN, otherwise TDS would be deducted @ 20%......

AS PER BUDGET PRESENTED ON 26.02.10

the proposed rate of TDS remain the same as b4, but the thresold limit for TDS provision has been increased as following wef 01.07.10  :

u/s 194 c -> Rs. 20,000/Rs. 50,000 to Rs. 30,000/ Rs. 75,000

u/s 194 h -> Rs. 2,500 to Rs. 5,000

u/s 194 i -> Rs. 1,20,000 to Rs. 1,80,000

IF TRANSPORTER DOES NOT FURNISH PAN THE TDS SHALL BE DEDUCTED @ 2%

Dear Mithilesh, in that case TDS shall be deducted @ 20%, not @ 2%.............

YES...CORRECT MR.ARORA