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Whether to file NIL TDS Returns?

K P BHANUSHALI (PROPRIETOR) (510 Points)

09 July 2011

From last year onwards, no need to deduct TDS from motor freight payments, if payee is having valid PAN.

Now, if I pay motor freight to such various parties during the quarter without deducting tax (as per rule), whether I am required to file NIL Quarterly TDS returns for the current year 2011-12 showing payments to such parties without TDS?

With regards

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11 Replies

Aparna Raja K.C (Student) (520 Points)
Replied 09 July 2011

No.. File TDS Return only when u have deducted the same as per requirement :)

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 09 July 2011

for your own safeguard, even TDS is not deducted, but they are above the limit, so you have to report the same to CIT(TDS), hence filing of NIL tax return with the "exempted deductees" and their PAN number is better solution to avoid future litigations.

step for file the nil return with data of transporters, amount and PAN

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 09 July 2011

Originally posted by : U S Sharma
	for your own safeguard, even TDS is not deducted, but they are above the limit, so you have to report the same to CIT(TDS), hence filing of NIL tax return with the "exempted deductees" and their PAN number is better solution to avoid future litigations. step for file the nil return with data of transporters, amount and PAN

AGREED

MUKESH SHARMA (B.Com , MBA, CS*) (108 Points)
Replied 09 July 2011

No requirement to File TDS Return..

abhiabbas (erp consultant) (55 Points)
Replied 10 July 2011

Freight to pay basis is required to deduct TDS . Payment for transportation charges with valid PAN is exempted from TDS

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 10 July 2011

Originally posted by : U S Sharma
	for your own safeguard, even TDS is not deducted, but they are above the limit, so you have to report the same to CIT(TDS), hence filing of NIL tax return with the "exempted deductees" and their PAN number is better solution to avoid future litigations. step for file the nil return with data of transporters, amount and PAN

AGREED.

Bhargav (Practising CA) (567 Points)
Replied 10 July 2011

Originally posted by : U S Sharma
	for your own safeguard, even TDS is not deducted, but they are above the limit, so you have to report the same to CIT(TDS), hence filing of NIL tax return with the "exempted deductees" and their PAN number is better solution to avoid future litigations. step for file the nil return with data of transporters, amount and PAN

Agreed...........It is must be filed, not only to safeguard

tiwari (manager) (37 Points)
Replied 11 July 2011

Please refer to income tax 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, (or say Transport Contrctor)on furnishing of his valid 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 @ 20%.

Also note that Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C in format prescribed by income tax deptt.

Now (from Sep'2010), the income tax deptt. has provided the prescribed format for filing of return containing the details of Transport Contractors.

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 11 July 2011

Originally posted by : U S Sharma
	for your own safeguard, even TDS is not deducted, but they are above the limit, so you have to report the same to CIT(TDS), hence filing of NIL tax return with the "exempted deductees" and their PAN number is better solution to avoid future litigations. step for file the nil return with data of transporters, amount and PAN

Ya Agree.................

(Guest)

Originally posted by : tiwari
	Please refer to income tax 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, (or say Transport Contrctor)on furnishing of his valid 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 @ 20%. Also note that Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C in format prescribed by income tax deptt. Now (from Sep'2010), the income tax deptt. has provided the prescribed format for filing of return containing the details of Transport Contractors.

agreed

Amit Sharma (Student) (25 Points)
Replied 13 July 2011

Originally posted by : tiwari
	Please refer to income tax 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, (or say Transport Contrctor)on furnishing of his valid 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 @ 20%. Also note that Deductor should furnish a separate return containing the details of Transport Contractors, who have provided PAN and TDS has not been made in accordance to subsection 6 of 194C in format prescribed by income tax deptt. Now (from Sep'2010), the income tax deptt. has provided the prescribed format for filing of return containing the details of Transport Contractors.