Budget 2015-16 Clarification regarding deduction of tax Under section 194C of Income Tax Act, 1961 from payments to transporters

Under the existing provisions of section 194C of the Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 75,000. Prior to 1.10.2009, section 194C of the Act provided for exemption from TDS to an individual transporter who did not own more than two goods carriage at any time during the previous year. Subsequently, Finance (No.2) Act, 2009 substituted section 194C of the Act with effect from 1.10.2009, which inter alia provided for non- deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer.

The memorandum explaining the provisions of Finance (No.2) Bill, 2009 indicates that the intention was to exempt only small transport operators (as defined in section 44AE of the Act) from the purview of TDS on furnishing of Permanent Account Number (PAN). Thus, the intention was to reduce the compliance burden on the small transporters. However, the current language of sub-section (6) of section 194C of the Act does not convey the desired intention and as a result all transporters, irrespective of their size, are claiming exemption from TDS under the existing provisions of sub-section (6) of section 194C of the Act on furnishing of PAN.

As there is no rationale for exempting payment to all transporters, irrespective of their size, from the purview of TDS, it is proposed to amend the provisions of section 194C of the Act to expressly provide that the relaxation under sub-section (6) of section 194C of the Act from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

This amendment will take effect from 1st June, 2015.

NOTE ON RELEVANT CLAUSES  OF FINANCE BILL 2015

Clause 43 of the Bill seeks to amend section 194C of the Income-tax Act relating to payments to contractors.

Under the existing provisions contained in sub-section (6) of the aforesaid section, 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.

It is proposed to amend sub-section (6) of the said section so as to provide that 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, where such contractor owns ten or less than ten goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum.

This amendment will take effect from 1st June, 2015.

EXTRACT OF RELEVANT CLAUSES FROM FINANCE BILL 2015

Amendment of section 194C.

43. In section 194C of the Income-tax Act, in sub-section (6), with effect from the 1st day of June, 2015, for the words “on furnishing of”, the words “where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with” shall be substituted.

( Compiled by Taxguru Team)

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Tags : Budget (1439) Budget 2015-16 (272) Section 194C (118) TDS (836)

116 responses to “S.194C TDS On Payment To Transporter Owing More Than 10 Goods Carriage”

  1. adarsha c n says:

    if transporation contranct, tds is filing u/s 194C(6)(7) is there any form for this purpose, or how we declare the non filing of tds of contranctor in earlier year? please answer me, is there any prescribed form, please suggest,

  2. surbhi says:

    Sir, is any firm require to pay TDS on Local Cartage, if its only based on textiles agency.

  3. b roy says:

    Please provide me no TDS Deducted of transporter 2(two) truck declaration form for the a.y 2014-15.

  4. Manyata says:

    i wanted to know if a person owning an auto & he is charging Rs.3000/- per month for transport of waste from one village to another, is there any tax deduction for that person. ( individual).

  5. Dhruvil Patel says:

    Yes

  6. Saddam Hussain says:

    If bill is For(less fright amount-30000) kya tbhi bhi builty pe tds katna padega???

  7. Himanshu singh says:

    if Transporter have 10 vehicle in starting year and he has submitted declaration and between year he has submitted that he has Purchase 1 vehicle now currently he has 11 vehicles
    now my question is this on which date we will deduct TDS from date of purchase new vehicle or starting from year

  8. JIGNESH SHAH says:

    1) When Transporter working on commission basis and hiring truck from outside on commission basis.How you will take this.

    2) TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company.

  9. prabhat kumar singh says:

    sir
    my question to related tds
    tds is dedtucted to billing date or lorry loading date??????

  10. jitendra says:

    Sir my question is that i am paying 71000.00 transportation shell i deduct tds ?

  11. M. Ali says:

    Sir,
    I am the exporter i deal in garment manufacturing.
    There is a cargo firm which exports our goods by air/sea, in the financial year 2014-15 we deducted 0.25% TDS of the bill but I get the demand that i had to deduct till the bill amount 2250000 and after it i had to deduct 2%, is it correct in the financial year 2014-15, and please guide me also about F.Y. 2015-16

    Thanking you

    • Raj says:

      Which place are you exporting to and what type of garment? I guess that has got a role to play. Maybe I could enquire more if you mention the type of garment and the country it is being exported to.

  12. CAKamal says:

    Is there any Form prescribed for such declaration by Transporters?

  13. vishnu says:

    Year Rs.30000/- Trabsportation TDS Deducte Yes Or no

  14. Ajit Ashopa says:

    Sir,

    plz advice me

    We are transporter not having mor then 10 goods carriage but hairing trucks from market
    more then 50

    is tds is aplicable on payment on hairing trucks ?
    we also have the diclearition of such trucks

    is diclearation forms send to department ?
    if a person not having any goods carriage but hairing trucks,is tds is aplicable on payment to him ?

  15. KETAN CHAUHAN says:

    Dear sir,

    1)Our transporter having more than 10 vehicles but its not own vehicles they hire from other parties and doing transporting busies, may i deducted tds @1% on his bill submitted, please clarify this matter.

    2)if we get transport facility from several transporter all having more than 10 vehicles but its bill amount not more than 30k and agreegated 75k than we are liable to dedcuted TDS from his bill amount. plz calrify .

  16. Deepak says:

    Dear sir how much % tds deduction under this section on transportation charge.according to amendment

  17. abhi says:

    Xltd is Paying Frieght charges on behalf of Yltd and transporter having more than 10 vehicles who is liable to deduct the TDS?

  18. Harendra says:

    If transport on commission basis and hiring vehicles for trader and he only have pan his payment to vehicle less than 30000
    and if total pament of hiring vehicles in a year cross 70000 than shoud tds deduct

  19. Pooja Mittal says:

    According to us this exemption is available only to those transporters who is filing their return u/s 44AE of the Act and declaring the same also. therefore if an agent owning no vehicle (providing transport through some other sub contractor) will be exempt only if he files his return u/s 44AE. Is I am right, Please reply

  20. Rahul Mishra says:

    Good Joke

  21. shankar ganesh says:

    Sir, please explain what is the key concept behind the submission of PAN by the transport service provider.

  22. SYED KALEEM ULLA says:

    What is the rate of TDS to be calculated on the truck freight where
    owner is having less than 10 trucks If he does not produce copy of PAN card?

  23. SUDHEENDRA says:

    Sir my question is if suppose a small transporter (5 vehicle) i am giving payment every month payment 40,000 Rs in this case Tds is applicable or not?

  24. R. K. Agarwal says:

    Dear all,
    The summary of provisions for deduction of tax on transportation is:-
    1. Up to 31.5.2015 Not required to deduct TDS if the payee provides his PAN.
    2. W.e.f. 1.6.2015 TDS not required to deduct if the payee’s income is subjected to provisions of Section 44AE of the I.T. Act. However, to avail this benefit, the payee has to provide the Deductor a declaration for not having more than 10 goods carrier and also copy of PAN card. Otherwise TDS deduction will be applicable.
    3. In Sl. No. 2 if payee’s income is not subjected to the provisions of Section 44AE of the I.T. Act i.e. if he owns more than 10 goods carrier TDS has necessarily to be deducted by the Deductor. However, if the amount to be paid is less than Rs 30000/- or if all bills paid during the year do not crosses Rs 75000/-, TDS need not deduct.

  25. SP says:

    What will be do,if transporter not submitted declaration form. Can we deducted TDS u/s 194C. PAN Available.
    Please Advise.

  26. Raval Kiran says:

    TDS DEDUCTION REQUIRED TRANSPORTATION ON EXPORT FREIGHT CHARGES

  27. P K Agrawal says:

    Sir where we need to deposit the declaration so obtained from the transporter along with Pan stating that they are assessed u/s 44AE, and what is the time period of deposit of declaration. Should we deposit in Income tax or should it be filed as scanned copy with qrtly return of TDS. please suggest

  28. AB says:

    TDS Return deposit time we are been wrongly entered Pan No .Plz help me (tds return is submit online) can any penitently for correction .

  29. yograj says:

    Dear Sir/madam

    TDS Return submit online time we are wrongly entered TPT PAN in the return.we have enter Transport pan no in the return but wrongly enter roadways pan no (0000 Roadways & 0000 Transport (first name is same) ). what are we do.Plz Sir HELP ME .

  30. RAJ KUMAR JAIN says:

    I WANT TO KNOW IF TDS WILL BE DEDUCT FROM CONTAINER CORPORATION OF INDIA ON FREIGHT
    IF YES ON WHICH AMOUNT OT BE DEDUCTED THE SAME

  31. R.Raghavan says:

    Sir,

    When Transporter working on commission basis and hiring truck from outside on commission basis,and I supply to some company. How you will take this.

  32. GOVIND GROVER says:

    SIR MY QUESTION IS
    THE TRANSPORTER JUST LIKE A BROKER HE IS WORKING TRUCK OWNER AND TRADER AS A MIDDLE MAN .TRANSPORT HAVE NO TRUCK HE IS JUST A BROKER . IN THAT TYPE OF TRANSPORT DEDUCT TDS OR NOT.
    BECASUSE IF TDS DEDUCT THEN GO IN TRANSPORT PAN
    TRUCK OWNER DEDUCT THE TDS FROM OWN FRIGHT AND ENJOY THE TDS TRANSPORT.WHAT CAN WE DO

  33. SUBHENDU says:

    IF TRANSPORTER GENERATE THE BILL IN MAY 2015 BUT WE PAY THE TRANSPORT BILL IN JUN 2015, IS TDS DEDUCTIBLE?

  34. Yogesh Goyal says:

    Dear Sir/Madam please tell me that is it compulsory to maintain details of transporter like Pan No, Amount paid / credited etc. in TDS return however no tax deducted against payment for transportation.

  35. Lokesh Khattar says:

    Please specify the status of Transporter as whether transporter is an individual or company or any other body. As per new amendment w.e.f. 1st June, 2015 “where such Contractor owns 10 or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with PAN, to the person paying or crediting such sum, No deduction shall be made from the sum credited or paid” so in this case please collect PAN no. and ask them to furnish declaration that they do not have more than 10 goods carriages, then there is no need to deduct tax if the above condition is satisfied but in case PAN is not furnished by the transporter, the amount is subject to WHT @ 20%.

  36. cool says:

    Dear Sir

    we receipt freight Inward rs.130570.00 & Freight outward Rs.90000.00 can tds is apply & please tell me how amny tds is apply? i wait for ans sir/madam

  37. Lokesh Khattar says:

    Disclaimer: Ignore above question

    Sir my question, as per new amendment on 1st June, 2015, “where such Contractor owns 10 or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with PAN, to the person paying or crediting such sum, No deduction shall be made from the sum credited or paid”.

    Is same provision applicable on Transport union if they have more than 10 vehciles during the previous year and furnishes PAN and declaration to the person crediting such sum?

  38. Lokesh Khattar says:

    Sir my question, as per new amendment on 1st June, 2015, “Contractor owns or less goods carriages at any time during the previous year and furnishes a declaration to thet effect along with PAN, to the person paying or crediting such sum”.

    Is same provision is also applicable on Transport union if they furnish PAN and declaration to the person crediting such sum?

  39. BSN says:

    In case the “X” not owning any goods carriages but provide the service of transportation after taking vehicle on hire,
    Whether the “X” is eligible to give a declaration with Zero vehicles?
    Whether he is eligible for not deduction of TDS under section 194C?
    Please clarify.

  40. SAQIB says:

    What is the TDS liability in case the transporter hires more than 100 trucks from market but owns less than 10 trucks and facilitates the supply accordingly. Do we have to deduct the TDS u/s 194 C on the whole freight amount.

  41. N M Kala says:

    Respected Sir,

    kindly advised regarding tds deduction on transportation charges. we have paid transporting for export goods from Gandhidham to Mundra port on container.

    Regards,
    Kala

  42. ASHISH PORWAL says:

    Respected Sir,

    kindly advised regarding tds deduction on transportation charges. we have paid transportaing for export goods from kota to mundra port on container.

    so we have used truck for transportaion for this services.

    kindly advised the same

    Thanks & Regards
    Ashish Porwal

  43. ANOOP says:

    sir

    my question is that, in how much rs.’s stamp papers the declaration is made.

  44. ANOOP says:

    SIR
    my question is that, the declaration is made on stamp papers or plain papers. if stamp papers then how much rs’s stma..the transporter has provide photo copies to the payer.

  45. HEMANT SHARMA says:

    Sir,
    please clarify,
    we have engaged with transport business but we have not own trucks. we take truck from truck owners. in this condition can we give declaration for non deduction of TDS?

  46. kamal Patidar says:

    sir,

    i am Working a Manufacuring Company we have Material Send For Export Purpuse but Transporter Provide onather Agent in case we have TDS Deduct or Not Freight bill

  47. NEETISH says:

    DEar sir,

    I WANTS TO KNOW ABOUT TDS DEDUCTION ON FREIGHT IF BILL ENTERED MAY MONTH AND PAYMENT GIVE JUN MONTH THEN TDS DEDUCTION ON MAY MONTH BILL PLEASE TELL ME.
    IF WE COME GOODS AUR PAID BY ME THEN WE ARE TDS DEDUCTION ON THIS BILL.

  48. Rahul says:

    Dear Sir

    My question is Transport charges bill raise before March 2015 Party is deducted Tds it should right or wrong ???

  49. pooja says:

    If transporter submit declaration that he owns less than 10 goods carriage and he hires more than 10 goods carriages from other transporter will our company be liable to deduct tds

  50. UDEE says:

    Dear All,

    1) Transporter has given declaration He has not having More than 10 Trucks, but he mentioned in declaration we are Hiring the Vehicle from others and not Deduct TDS.

    This is Valid or Not?

    2) If it is Okey then what we will to Shown in E-tds return as……

    Please advise me.

  51. p.sudheer kumar jaim says:

    We are not having any truck .we are only commission agent .we place the lorry to some company but they are deducting TDs .the TDs will be deduct or not please give us reply sir

  52. Dhanvir Taneja says:

    sir,

    My question is that if transporter booked our consignment from party in dated 30.05.2015 but material is received us in June month, then in this situation can TDS is applicable for deduct from transporter or not ???

  53. Sandeep Sharma says:

    Dear Mr. CA. BAHUBALI D

    Yes Benifit of TDS Exemption Can be take in your Giving Conditions .
    But Declaration Form is Must

  54. Sandeep Sharma says:

    Mr. chandan

    Tds will be deducted if following condition satisfy
    1. Transporter owns more than 10good carriage, AND
    2.payment exceed 30000 one time /75000 aggregate in a year.
    (if 2 condition satisfy u must deduct tds irrespective of declartion]
    OR
    3. if he owns 10 or Less good carriage Donot furnish Declartion payment exceed limits.

    In your case since he owns more than 10 G.C payment exceed 70000

    Your company shall liablie to deduct tds.

    Note: If you know the transporter actualy owns more than 10G.C. and furnish you false declaration that he owns less than 10. -then you shall follow such declartion

  55. Sandeep Sharma says:

    Dear All Transporters , Party Can Consignor/Consignee Will deduct TDS From your bill in case of payment More than 75000 in one year and will issue Form 16 For deduction

  56. Sandeep Sharma says:

    Dear All,

    Answar of your questions are that TDS Declaration 194c you have to take from Truck owner for placing their vechicle in case you hire 50 trucks and all the truck owner have not more then ten Truck and any truck in owner by indivisule and they submit pan card also so you dont have to deduct TDS by Their Freight. But you have submitt the return of TAN Number Must

  57. purnachandra chatterjee says:

    TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company. -ABC OWNS 6 TRUCKS . ABC USES SERVICES OF ANOTHER 50 TRUCKWALAS. TOTALLY HE IS USING 56 TRUCKS TO DO HIS BUSINESSS OF TRANSPORTATION OF GOODS BY ROAD. CAN HE GIVE DECLARATION AND TAKE THE BENEFIT OF TDS EXEMPTION? AND THE DECLARATION HAS TO BE IN WHICH FORMAT? –

  58. M.A.Jawahar says:

    TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company.

  59. P.Das says:

    Sir,
    please clarify,

    we have engaged with transport business but we have not own trucks. we take truck from truck owners. in this condition can we give declaration for non deduction of TDS???

  60. PD says:

    TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company. ?????

  61. CA. BAHUBALI D. SHAH says:

    Querry same as Lalit shah’s querry above.
    ABC OWNS 6 TRUCKS . ABC USES SERVICES OF ANOTHER 50 TRUCKWALAS. TOTALLY HE IS USING 56 TRUCKS TO DO HIS BUSINESSS OF TRANSPORTATION OF GOODS BY ROAD. CAN HE GIVE DECLARATION AND TAKE THE BENEFIT OF TDS EXEMPTION? AND THE DECLARATION HAS TO BE IN WHICH FORMAT?

    Regards,
    CA.B.D.SHAH
    9821489507, shahb_ca11@hotmail.com, shahbca11@gmail.com, shahbca11@rediffmail.com

  62. Kedar Singh Rawat says:

    We are a manufacturer and hire small tempo for delivery the material, and tempo having no PAN No. so we can deduct TDS on there payments and what rate? But annual payments less than Rs. 75000.00 and only having single tempo.

  63. Kedar Singh Rawat says:

    We are a manufacturer and hire small tempo for delivery the material, and tempo having no PAN No. so we can deduct TDS on there payments and what rate. but annual payments less than Rs. 75000.00

  64. SAURABH JHATTA says:

    SIR WHAT ABOUT OCEAN FRIGHT AND RAIL FREIGHT ????

  65. ashish Jagtap says:

    Dear all,
    Could you please explain more about tds on GTA. I would like to know more about 10 goods carriage. As per notification of finance bill 15-16 small transporter not furnishing pan no need to deduct the td

  66. Mohan says:

    Sir, please say shall we shall deduct tds from agent or truck owner as we are in hiring business only. We have no trucks we hire place them to pvt ltd company. We hire these trucks from agents or sometime directly from owner. Please say our for TDS. We are transporter.

  67. MADHAV SATAV says:

    If, i am as company, i have to paid dailly freight charges to transporter, what rate will i have to deduct the TDS on that freight Inward, Please sent me that slab of tds rate and the concept of truck owned less that 10 and more, for tds applicability,

  68. Mahesh says:

    Sir,

    pls clarify me, to day we have hired one truck and paid advance of Rs.40000/- for transport our materials from one place to another place. Now TDS will applicable or not on said transaction???. if the single owner gave declaration will he exemption for TDS??

  69. KETAN PATEL says:

    HLLO

    we have engaged with transport business but we have not own trucks. we take truck from truck owners. in this condition can we give declaration for non deduction of TDS.

    Regards
    Ketan PAtel

  70. HEMANT SHARMA says:

    SIR,
    what is the meaning of “own”.
    example: transporter having 12 trucks 4 own & 8 on lease (whether operating or finance lease). Is this transporter also subjected to TDS under said section?
    – See more at: http://taxguru.in/income-tax/tds-deductible-payment-transporters-owing-10-goods-carriage.html#sthash.KBusY2Hk.dpuf

  71. Ananthakrishnan says:

    According to 194C if the single payment exceeds Rs.30000 or for the financial year the amount exceeds Rs.75000 the TDS is to be deducted at applicable rate, is this provision applicable to small Transport contractor(owned less than 10 vehicles), even if payment of amount exceeds the above said limit?

  72. manjeet says:

    Would it require to upload Declaration received from Transporter on TDS traces while e-filling Nil TDS return..?

  73. SAURABH VERMA says:

    SIR,

    what is the meaning of “own”.

    example: transporter having 12 trucks 4 own & 8 on lease (whether operating or finance lease). Is this transporter also subjected to TDS under said section?

  74. Lalit Shah says:

    Dear Sir,

    If a Private Ltd company has less than ten trucks, but also engage other trucks from market for transportation of the goods of his client. Company gives declaration that he do not own more than 10 truck and also gives copy of company’s PAN card. Will the company liable for TDS deduction or not. Please clerify the matter.

    Lalit Shah

  75. raj says:

    4.06.15
    Sir I am working in a manufacturing co. In co. One truck coming many times in a year.what is the liability of my co.

  76. pankaj says:

    Is it necessary to collect declaration from all truck owners. If Consignment note is different?

  77. ANKITA says:

    Dear Sir,

    Pls inform me that first bill of transporter 30000/-, and total amount 75000/- in financial year than that time we able to Deduct TDS on Bill ?????????????

    pls reply fast.

  78. hanuman says:

    I am a transpoter contactar I how to ducted tds on truck driver and owner plz give me advice me

  79. subhash says:

    Dear Ad

    Yes, it is mandatory require to furnish such details by the transporter and if not provided by transporter then, deduct TDS as applicable rate @1%/2% as the case may be .

  80. kushal agrawal says:

    sir what is the meaning of “own”.

  81. ajay sharma says:

    Dear Sir,

    We have textile trading business. Transporters deliver goods to our godown. Shall we receive declaration from transporters? Are we eligible to deduct TDS u/s 194C(6) of Income Tax Act?

  82. Ram says:

    Dear sir,

    My clearing agent issued us Custom expenses like Container Loading,damrage,documantation,rail freight concor,DEPB licence verification charges and saprate bill issued agency charges,Can I deducted TDS and one Bill raise of container moving freight charges.but My agent is issued his prop firm bill and he is hire truck so please inform to me can I deduted tds from his bill.

  83. Suresh Shetty says:

    Sir,
    we are awaiting for your reply.

  84. Suresh Shetty says:

    Dear Sir,
    1. We are transport contractors

    2. We outsource trucks from agents

    3. Is it necessary to collect declaration from all truck owners.

    4. Since we out source trucks from the agents, and we really do not own any goods carriage, and outsource trucks cross 10 nos, can we submit the declaration to our customer who pay our transportation freight

  85. ANKITA AGARWAL says:

    Dear Sir,

    I want to know that for claiming exemption from TDS is it necessary that vehicles have to be less than 10 and Income have to be computed u/s 44AE. Is it necessary to fulfil both the conditions?

  86. G P Singh says:

    My Qwerry is

    When Transporter working on commission basis and hiring truck from outside on commission basis.How you will take this.

  87. Sreekanta says:

    Dear Sir,

    Plese clarify the followings:

    01. Rs.30000/- / Rs.75000.00 is bill amount or TDS amount. ?
    02. I have seen some messge that TDS @ 1% / 2%. Please explain if such difference is there.

    Thanks
    Sreekanta

  88. nitesh says:

    we need to take declaration in which manner whether a prescribed format is their like 15G/H or a simple declaration which is not required to be submitted in Department.

  89. B L SAINI says:

    Dear Sir

    We are a transporter but we don’t have any vehicle pls confirm we can issue declaration less than 10 vehicle and our client will be deduct TDS under 194C

  90. Navin says:

    TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company.

  91. M shiv kumar says:

    Sir Pls. advice whether one time declaration for not having more then 10 trucks is ok or declaration on each bill is required to substantiate the correctness of declaration at the time of payment to party.

  92. yogiraj jain says:

    Dear Sir/Mam
    please suggest me on which amount TDS deduct if i paid a part amount (only to pay/advance) of transportation charges. Transportation payment detail in TDS return compulsory or not (if PAN given by Transporter for no deduction)

  93. amit singh says:

    What is the declaration format for transporter who comes under 44AE

  94. SHASHI RANJAN says:

    Pls. elobrate the tds on transportation of goods by Road.

  95. Karan says:

    Is there any specified format for such declaration if assessee owns less than 10 trucks ?

  96. Naira says:

    What does the word “ELIGIBLE FOR 44AE” means??
    Does it means that if a transporter is eligible for 44AE but is not opting 44AE than also no TDS required to be deducted if he furnishes his PAN and declaration

  97. Nishit Saiya says:

    Dear All,

    As mentioned, that, it will be effective from 1st June 2015 i.e. payment to be made on or after 1st June 2015.

    Do we need to check no. fleets held by the transporter during 2014-2015 or during current year i.e. 2015-2016 ??

    If suppose he is not having more than 10 fleets during 2014-2015 and acquires during 2015-2016 after 1st June 2015, and thereby making his fleets more than 10, then, do we need do deduct TDS retrospectively or prospectively ??

    Do we need to deduct taxes on bills booked during the month of April & May 2015 and payment of which to be made on or after 1st June 2015 ??

    Your quick reply will be appreciated.

    Regards,

    Nishit Saiya

  98. pankaj says:

    Dear sir,

    if assesee is dealing with transporter union to hire truck and a union is not having a single truck in the name of it.
    tell me than if 194C is applicable or not.

  99. RUSHABH says:

    SIR, WHETHER WE HAVE TO DEDUCT TDS ON BILLS OF APRIL AND MAY OR WHETHER SUCH BILLS ARE OUTSIDE THE PURVIEW OF TDS COMPLIANCE ?

  100. Anupam says:

    What if The transporter is a GTA (Goods Transport Agency) who hires goods carriage from various owners and lents them for hire? How will payments to such GTA for transportation be assessed in respect of the amendment?

  101. mkpatodia says:

    what is the meaning of previous yr can anybody explain with example.

  102. Avi Jain says:

    Sir,
    please clarify whether we have to check actual ownership of vehicle for calculation of number of goods carriages or if transporter is acting as an facilitator only wherein he does not own any vehicle but engages number of vehicle for supply of material.

  103. Rawal Singh Bhati says:

    Mr. chandan

    Tds will be deducted if following condition satisfy
    1. Transporter owns more than 10good carriage, AND
    2.payment exceed 30000 one time /75000 aggregate in a year.
    (if 2 condition satisfy u must deduct tds irrespective of declartion]
    OR
    3. if he owns 10 or Less good carriage Donot furnish Declartion payment exceed limits.

    In your case since he owns more than 10 G.C payment exceed 70000

    Your company shall liablie to deduct tds.

    Note: If you know the transporter actualy owns more than 10G.C. and furnish you false declaration that he owns less than 10. -then you shall follow such declartion

  104. Rawal Singh Bhati says:

    @puttartaju s.

    So what ,if anyone have more then 10 goods carriage, he shall hv sufficient means to comply with income tax act provision.

    Tds is just a deduction, he may get refund later on

  105. Rawal Singh Bhati says:

    @dear ad

    Person owns more than 10 goods carriage is not small transporter in the view of Income tax act.

    Deduction of tds is duty of service reciver not the transporter. Transporter will furnish above detail only if the service recevier ask.

  106. Chandan says:

    Sir,
    My question is if transporter owning more than ten goods carriage and he will also provide me declaration form with director signature than
    1. TDS liablility leavy on company ? and
    2. If his overall yearly payment more than 75000 so company liable for tds deduction.

    Pls your answer send to my mail id “chandan200892@gmail.com”

  107. Puttartaju S says:

    This is a ridiculous amendment.In this age of inflation, increased fuel prices, hard to be found drivers and coolies, neck to neck competition I am sure most of the transporters may even break even.

    In my opinion and experiences, very few goods carriage entities make profits. Now this adhoc TDS provision will add to the worries of the transporters.

  108. navneet aggarwal says:

    In case the transporter does not furnish declaration as to how many goods carriages he owns; it will be assumed that he owns 10 or more such carriages and TDS shall be deducted.

    Furnishing PAN is compulsory otherwise TDS rate shall be 20%.

  109. S Banerjee says:

    The objective of this amendment is to link it with sec 44AE. According to sec 44AE if the assessee is owner of more than 10 goods carriage or who is doing business with hired goods carriage (CBDT Circular 684 Dated 10/6/94) it will not be covered under this section.
    As per the proposed amendment if the assessee is not covered u/s 44AE, TDS will be required to be deducted.

  110. Basavaraj says:

    If he/she has 10 good carriage , Than he will not come under the small transporter .Than he will come under the TDS compliance .

  111. ad says:

    Sir my question is if suppose a small transporter owns more than 10 goods carriage during a year and he does not furnish these details to the concerned deductor that he owns more than 10 goods carriage and so no TDS will be deducted on the income of small transporter & is it compulsory to furnish such details by the transporter ???

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