Most of the time I observed that in the industry there are always be a confusion regarding application of Section 194C i.e. TDS on contract at the time of payment to the transporter. This is might be because of various amendments has been taken place since last so many year related to this specific point i.e 194C(6) and 194C(7). Hence today I will try to summarise the details of only these two smalls but very important sub-sections of Section 194C.
Important Points – TDS under Section 194C on Payments to Transporters
1. This amended sub-section is applicable w.e.f. 01st April, 2015
2. The transporter for these sub-sections means person handling business of plying, hiring or leasing goods carriages.
3. The benefit of non-deduction of tax will be available only for small transport operators owning not more than 10 goods carriages.
Hence if the transporter owning not more than 10 goods carriages at any time during the year, provide his PAN alongwith the declaration then as a payer, you don’t have to deduct his TDS u/s 194C.
But if the transporter owning more than 10 goods carriages at any time during the year, then you, as payers are liable to deduct TDS at the time of paying charges to goods transporter at the rate of 1% or 2% as the case may be; based on the transport contractor’s status.
Note: The above mentioned rate i.e. 1% and 2% will be reduced to 0.75% and 1.50% respectively during the period starting from 14th May, 2020 to 31st March, 2021.
4. The person responsible for paying or crediting any sum to the such transporter shall furnish declaration along with PAN to the income-tax authority.
The link for the format of declaration is as under:
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(Republished with Amendments by Team Taxguru)
Dear Sir,
If the Pan Submitted by transport operator is inoperative, weather TDS is attracted?
if transporter have not own vehicle than we can deduct tds or not
Dear Sir, Incase of Lorry Hire payment is made to a for Truck procured thru an online portal and payment is done to Truck driver just like OLA & UBAR, the bill is given by the APP/Portal. In this case what will be the TDS implication is not furnishing PAN No or Declaration & the Bill is provided by the APP
Dear sir,
can I deduct any tds on loader ?
if we have hired vehicles from any Transporter who have less than 10 own vehicles and he hired from someone a who have more than 10 vehicles and provided us in such case we have to dedect tds or not
If your Bus Service Bill in one time more than 30000/- or exceeds 1,00,000/- in a F.Y, then you have to deduct tds on payment.
transporter give us bill of Rs28029.72+gst. TDS % what will be ? then what will be the entry in accounting
hi sir , i have a doubt if the company doesn’t owns more than 10 veh and tds not to be deduct only on Transport invoices or warai , unloading ??
yadi truck owner ke naam se check dete hai to kya hoga
Dear Sir,
We have a receive transporter bill of Rs.50000 per month and if the transport is a proprietor ship company, then TDS shall be deducted .
please suggest me.
TDS to be deduct @ 1% necessary
Dear Sir, We have a receive BUS Service bill of Rs.140,000.00 per month and if the transport is a proprietorship company, then TDS shall be deducted .
Please suggest me.
If a part carries more than 9 carrages that how to deduct tds on all 9 carrages or on only one
Transporter ka khud ka nahi hai, transporter dusre ka gari lekar transport karta hai or khud ka bilti deta hai. es condition main kitna % TDS hona chahiye
JISKI BILTY HAI USKA PAN CHECK KRO
AGAR USKA PAN INDIVIDUAL KA HAI TO 1 % TDS OR AGARA USKA PAN OTHER THEN INDIVIDUAL HAI TO 2% TDS DEDUCT HOGA
1% TDS in what condition does it happen
If Vehicle bill comes hire charges + Fuel charges then how to TDs deduction if Individual PAN
Sir if Transporter Bill is of 31325 with GST & Basic Amt is 27969.20 is limit Cross From Rs 30000 Should I Deduct Tds or not Their Are Two Bills of such type.
TDS is applicable only on net amount not on GST, then if your bill amt is 30000 then no need to deduct TDS on this bill.
Sir/Madam if CONTRACTOR Bill is of 35400 with GST & Basic Amt is 30000. Should I Deduct Tds or not Their Are One Bills and i have no idea in future bills will be receive or not.
Thanks for sharing this information…
service provider charged Rs.120000 as a testing charges & Rs.15500 as a transportation charges then we should deduct tds on Rs. 120000 or Rs. 135500 ?
and under which section of TDS ??
please guide us….
Very good
TDS Will be deducted on nature of payment. if there engaged transport company who having more then 10 carriages will be deducted TDS as per norms.
i am starting a small transport company i am hiring chota hathi (autios) for goods bill of one person approx 200000 per year thus do i have to detuct tds
Is there any TDS levy on water transportation charges (charges paid for transportation of goods from one port to another) and under which section?