As per the 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, on furnishing of his 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 as per 194C.

This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such scenario should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.

New returns for such information
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. CBDT would be prescribing the format for such return and the methodology to file such return shortly. However it is expected to be one time activity for the Deductor to furnish these details after 31/03/2009, containing the information of all 6 Months.

Rate of TDS shall be if PAN is not provided from 1.10.2009 to 31.3.2010

1. 1% if the payee is individual or HUF.
2. 2% otherwise

After 31.3.2010 the rate shall be 20%.

End date of such provision
Even though the date 31/03/2010, the end date for this provision is not specified in amended 194-C section, the Financial budget documents of 2009, clearly indicated its termination by such date. It is expected that the forthcoming finance act 2010, will amend the section by removing the sub sections 6 and 7 of 194C.

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Category : Income Tax (27627)
Type : Articles (17301)
Tags : CBDT (694) TDS (1039)

111 responses to “TDS on transportation charges when PAN not furnished”

  1. Lakgn says:

    Tds 1 percent ke liye kya format hai mera to abhi 2 pecent cut hota hai single peopriter hai so pl send any formet

  2. kalpesh says:

    Give me a form under section of 94c

  3. Pradip Satani says:

    I have received LR for the month of May.2015 and entry done in June.2015
    In this case we should deduct TDS on Transport or Not ???

    Please Guide me

  4. sandeep says:

    . sir this exemption only vehicle owner who give the own vehicle but goods transport agent also however GTA not a compulsory to own vehicle some case only agent

  5. Rout says:

    Dear Sir(s),
    We have paid transporting charges of building material above 200000/- and PAN of transporter is kept by us,i want know TDS is deducted from transporter or not.
    Please give suggest above ref.


  6. simi says:

    sir, whether a binding contract agreement is required for deducting tds under se 194c?

  7. muruganandham says:

    Dear Sir,

    Material received from France now we have pay to Courier charges. They are sending bill copy to me. purticulor vendor service available from India also but PAN not available now we will process the invoice so TDS rate how much on the bill.

    Please advise..

  8. m f hirolli says:

    i have made Rs 4200000/- as lorry freight to the lorry owner during the year 2011-12 & i have also collected their PAN no & R C Book, please advise me whether i have to deduct tds or not

  9. S Patil says:

    If invoice it’s self vendor are chareged frieght charges,but service tax is not charged,for this TDS is applicable?,and if applicable means for only frieght charegs i needs to deduct tds or what? pls give me solution.
    S patil

  10. swati says:

    i want to know does tds applicable for rice transpotation for 2011-12 under centre government scheme Shaley Poshan Aahar? Please send details.

  11. jeegnesh gokani says:

    i wnt to knw that it is compalsary to submit the record of trasnsportation and pan no. of party to income tax department.

  12. sachin says:

    If transporter dont have service tax no on his bill than we will deduct tds on his bill ?

  13. RAMAN says:

    Dear Sir,
    We have hired a bus service for pick & drop facility for our staff. Should we deduct tds while payment of transport bill if he have only one vehicle in his name…………

  14. sandeep says:


    I have to pay the bus rent which is hired for company tour for rs.43000 please let me know whether i have to deduct the TDS if payment is more than 30,000 in single transaction.

  15. shantanu dutta says:

    one supply contract for geojute with specific configuration was made with a proprietorship firm on wbf no.2908.Transportation charge was included in the rate offered by the firm.Now the question is wheather incometax(in percentage)is to be deducted or not?

    • P.Malleswaran says:


      i have one adbout about this, what is the Purchase Order Terms, Who will paid by the freight.

      including of the freight we cannot decut the TDS


  16. Sivaram says:


    We are hiring trucks for movement of containers. Sometimes, transporter is charging us additionally for the halting of the truck at yard for various reasons. Since transportation charges is exempted from TDS if PAN provided, whether this halting charges is as a part of the transportation or it has to be considered to tax. We await your feedback.

  17. Nitin says:

    When a transporter doesnot provide PAN no then TDS on such shall be deducted at the rate of 20%. but transporter’s limit as per 94-c Rs. 30000/- doesnot exceed. then which amount should be disallowed under chapter XVII-B OF 3CD REPORT ?

    • Satish says:

      Dear Sir,

      If the contractor not provide the PAN No. then we have to deduct the TDS @ 20%.

      My Query- what is the limit for TDS, if Transporter dose not provide the PAN No.

      Eg: If i pay Rs 12000/- to a transporter for the year 2010-11, then i have to deduct the TDS or not.

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