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)
but sir mera ca kehta h ki apko tds katna padega q ki ap payment gadi wale ko na karte huve kisi sub contratore ko kar rahe, or income tax act k hisab se gadi wale ka pan no. lekar payment direct gadi wale ko karte h to tds nahi katna
sir, i have a problem pls give me ansure,
mera ek trasport h, or mene contract le rakha h ek com.se uska mall sahi jagah pauchane k liye me market se kisi sub contractore se truck bulata jo ki market ka koi b truck mere pas bhej deta, or me sub contractore to freight ka payment kar deta hu uska pan no.lekar. or me koi tds nahi katta hu, kya me sahi kar raha hu ya muje tds katna chahiye sub contractore ka.
R/Sir,
If truck owner having only 2 trucks and plying with any contractor, then he is lible for TDS deduction by his freight charges or not in fin yr.2009-10 up to 30/09/2010. owner having self PAN No. and he is tax payer,
Kindly sugest
Thanks
If PAN details is not given at the time of making payment but the after 2/3 month (as well as after return filing day) the same transporter giving the PAN details, at this moment what is to do????????????? solve
This rules i.e if PAN details not found then TDS will be deducted at higher rate, this rules are applicable only for transportation or all the contract falling on section 94C
Whether we should obtain PAN number of Truck operator or of the Transport Company who has issued consignment note regarding transportioan of goods.
Please guide.
If a transporter bill’s for Rs.44,000/- but he is furnishing us PAN No. then we will have to deduct tds. Also tell me what is the exemption limit for transportation services?
what are the latest developments regarding TDS on Transportation?
why not deduct tds on transport charges
If transporter giving wrong PAN for lowering the deduction amount, for this who will be responsible????? me or the transporter??????????
If the transporter has applied for PAN on the date of making payment then at what will be the rate of TDS?????????? Kindly Suggest
If transporter not providing his PAN and we have deducted the TDS the please confirm how we can file TDS ret. without mentioning PAN No.
After 31.3.2009 the rate shall be 20% if pan not provided.
In PAN provided no tds to be deducted.
For the financial year 2010-11 how much tds will be deducted from transport charges.
form 26Q CORRECTION STATMENT
DOWOLOAD
“This provision is applicable on payments made from October 01, 2009 to March 31, 2010. Such case should be determined by checking whether the Deductee has provided his PAN to the Deductor, during the payment.
When PAN not furnished the TDS will be done @1% or 2% as the case may be.After march 2010 this rate changed to 20%.”
Sir,
PLease define the threshold limit.
kindly provide me the return form in which we will submit the information to I.T department
for tds exemption to transportor.
when it will be submitted.
please leave a reply of above
Normally transporter owners are sole proprietorship , if a transporter gives wrong PAN No inorder to avoid Higher tds dedcution, who is responsible for this.
what is the exemt limit for tds on contractor after which tds will be deducted
Whare are the benchmark to call a payment as freight charges
Sir, what is the defination of transporter. i have a tranpoter who some times despatch the material throuth taxi or sometimes through hand delivery vise versa………….
clear me on this.
If karta is not presenting HUF he is working as individual(he is an active partner)than all above income should be considered in the income of Individual.
HUF is partner in Partnership firm and Karta of HUF is active partner in Firm. Karta receive Salary, Interest on capital & Commission from Firm. Under which status the above income will be taxable ? HUF or Individual ?
Sir,
I am confused in a matter that if transporter not given their PAN no. then the deductor must deduct the tax. But I want to know that Is it possible to file tds return of transporter having no PAN number???
plz give your comment on it.
Regards,
and also it is mentioned that in case PAN is unavailable then TDS @ 20 % IN ALL CASES.
looks like 20k & more if one time and 50k & more if total annually. Though it is still confusing because clear threshhold limit is not mentioned in case of transportaion in sec 194C.
FOR CHARGEING TDS ON TRANSPORTATION PAYMENT MADE HOW MUCH EXEMPTION LIMIT.PLEASE SPECIFY IMMEDIATELY.
looks like that exemption limit of 20k & 50k for sec 194C is common for all subsections including transporter.
Dear Sir,
I want to know that in case of Section -194C (Transport Contractor) if any assessee has not provide PAN than we have to deduct TDS but exemption limit of Rs. 20000/- per contract or agregate Rs. 50000/- per annum is available in this case or not please clearify.
If transporter furnished PAN then
TDS will be deducted at rate ??
If transporter not furnished PAN then TDS will be deducted at rate ??
Dear Sir,
what is limit of transporter for tds deducting when he had no PAN No.
what is rate of tds on transporter payment after 31.03.2010? if he has given PAN & limit exceed Rs.10 lakhs p.a.
how should i treat for tds deduction in pan number is not submitted for packers & movers servcie availed?
no replies to my query …
same query as of Mr Hiren’s on if TDS to be deducted if the PAN not available but payment within threshhold limit. Does threshhold limit under 194c still exist fot transporter ?
We paid Rs. 10000/- as Transportation Charges and the party has no PAN No. Is TDS required to deduct. and the Exemption limit of Rs. 75000/- is considered or not ?
Will this provision is applicable only on Transpoter which are covered under Sec44AE?
Sir,
we are sending our consignment through a transporter.should we deduct tds from his payment.he has provided his pan details.
and i would also like to know about the service tax.should we pay service tax.our one months transport bill is more than 10000.but we ha not registered still for service tax.
please do reply me.
01/04/2010 what rate of t.d.s. like transporter, pur. freight, commission, interest paid, m/c. and plant rent etc.
and what format of t.d.s. certificate
My queStion is that how much int on t.d.s is deposited with revised return
sir,
what is rate of tds on transporter payment? if he has given PAN & limit exceed Rs.10 lakhs p.a.
My father having flat in pune which given on rent and this rent debited to my bank account.Due to this i cross over income tax exemption limit.So I want to know would this rent added in my income?
i want to know whether tds is deducted on payment of binding work of books.
Would this nil rate of tax be applicable if the payment is done to a transport contractor who does not own the transport vehicle but has acquired the mode of transport from another person. Does such a person qualify to be treated as a transporter eligible for nil rate of tax during the course of plying, leasing or hiring oods carriages.
what is rate of TDS and exemption limit?
sir,
our company senior officer frequently hired car for visit of site and person whom car they hired is on regular basis,so please advice should i deduct tds on that transportation?
If a transporter bill’s for Rs. 22500/- but he is furnishing PAN then we will have to deduct TDS & if he is not furnishing PAN then what should we do.
Dear sir,
if transporter has PAN, IT MUST BE FIRNISHED TDS RETURN…??.
PLEASE TELL ME.
how can i put my query so i can get my answer. plz let me know