TDS on transport contractors :-Finance Act 2009 has made an important change in respect of applicability of TDS on transport contractors. Section 194C has been replaced and the following two sub sections provide for non deduction of TDS on transport contractors.
(6) 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 during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
(7) The person responsible for paying or crediting any sum to the person referred to in sub-section (6) shall furnish, to the prescribed income-tax authority or the person authorized by it, such particulars, in such form and within such time as may be prescribed.
“goods carriage” means any motor vehicle constructed or adopted for use solely for the carriage of goods, or any motor vehicle not so constructed or adopted when used for the carriage of goods,”
Rate of TDS
|Deductee||Status||TDS rate upto 30th Sept 2009||TDS rate from
1st Oct 2009 to 31st March 2010
|VALID PAN||PAN NOT
|Individual ! HUF||Contractor||2%||NIL||1%|
|Individual ! HUF||Sub-Contractor||1%||NIL||1%|
Condition for NIL deduction
Whether to include such transactions in eTDS statement