Format of Declaration U/s. 194C(6) For Non–deduction of TDS by Transporter

TDS on Payments to Transporters- Amendment to Section 194C + Undertaking Format

Extract of Section 194C(6) of Income Tax Act, 1961–

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 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.

Format of Declaration Under Section 194C(6) For Non – Deduction of Tax at Source (TDS) to be furnished by the Transporter wef 01.06.2015 i.e. NO TDS in case where such transporter owns ten or less goods carriages at any time during the previous year and furnishes a declaration to such effect, along with PAN.

To,

Taunisha Consultancy Services

Address:

Declaration

I, Name of vehicles owner, Proprietor/ Partner/ Director of M/s Name of the company or firm and address of the company, (hereinafter “The Contractor”) do hereby make the following declaration as required by sub section (6) of section 194C of the Income Tax, 1961 for receiving payments from the payer without deduction of tax deduction at source (TDS).

1. That name of party authorized to make this declaration in the capacity as proprietor/ partner/ Director.

2. That the contractor is engaged by the payer for hiring or leasing of goods carriage for its business.

3. That I have not own more than ten goods carriage vehicles as on date.

4. That if the number of goods carriages owned by the contractor exceeds ten at any time during the previous year 2017-18 (01-04-2017 to 31-03-2018), the contractor shall forthwith, in writing intimate the prater of this fact.

5. That the Income Tax permanent account number (PAN) of the contractor is …………………… A photocopy of the same is furnished to the payer along with this declaration.

Place:

Dated:

Declarant

Verification

I the above-named declarant do hereby verify that the contents of paragraphs one to five above are true to my own knowledge and belief and no part of it is false and noting material has been concealed in it.

Place:

Dated:

Name of the Declarant

Frequently Asked Questions (FAQs)

Q.1. When is TDS not deductible on payments made to a transporter under Section 194C(6)?

Ans. No TDS is required to be deducted under Section 194C(6) where the transporter is engaged in the business of plying, hiring, or leasing goods carriages, owns not more than ten goods carriages at any time during the previous year, and furnishes a declaration to that effect along with a valid Permanent Account Number (PAN) to the payer.

Q.2. What are the conditions for claiming exemption from TDS under Section 194C(6)?

Ans. To claim the benefit of non-deduction of TDS, the transporter must satisfy the prescribed conditions, including ownership of ten or fewer goods carriages during the previous year, submission of a declaration confirming the same, and furnishing a copy of the PAN to the payer.

Q.3. What information should be included in the declaration under Section 194C(6)?

Ans. The declaration should contain the transporter’s name and status (proprietor/partner/director), details of the business, confirmation that the transporter owns not more than ten goods carriages, PAN details, an undertaking to inform the payer if the ownership exceeds the prescribed limit, and a verification confirming the correctness of the information provided.

Q.4. What should a transporter do if the number of goods carriages exceeds ten during the previous year?

Ans. If the transporter owns more than ten goods carriages at any time during the previous year, the transporter should immediately inform the payer in writing, as the conditions for non-deduction of TDS under Section 194C(6) would no longer be satisfied.

Q.5. Is furnishing PAN mandatory for claiming non-deduction of TDS under Section 194C(6)?

Ans. Yes. Along with the declaration prescribed under Section 194C(6), the transporter is required to furnish a valid Permanent Account Number (PAN) to the payer. The benefit of non-deduction of TDS is available only upon compliance with the prescribed conditions, including furnishing PAN.