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:
*****
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
(Republished with Amendments by Team Taxguru)
Tds 1 percent ke liye kya format hai mera to abhi 2 pecent cut hota hai single peopriter hai so pl send any formet
Give me a form under section of 94c
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
Dear
. 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
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.
Regards,
Rout
sir, whether a binding contract agreement is required for deducting tds under se 194c?
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..
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
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.
Thanks
S patil
i want to know does tds applicable for rice transpotation for 2011-12 under centre government scheme Shaley Poshan Aahar? Please send details.
i wnt to knw that it is compalsary to submit the record of trasnsportation and pan no. of party to income tax department.
If transporter dont have service tax no on his bill than we will deduct tds on his bill ?
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…………
Sir,
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.
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?
Sir,
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.
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 ?
What is single bill limit for deduction of TDS on Contractor ?
sir,
meri ek transport copany h mene contract liya hua h usme f.y.2010-11 me t.d.s.nhi katne ki limit kaha tak h .so aap me bataye
I want know what is TDS rate of bus service?
Please guide me?
if a person who know the repairing work well and submit the bill for payment up to Rs. 10000/- will be required PAN Number and if he has not the same whether he is bound to some % of amount of TDS.
Dear Sir,
Pl. suggest me a transport freight paid Rs.209500 in f.y. 2010.11, and I have receive Pan of Transporter. and suggest me TDS return filling in 4th Q and mention the transport name and detail of freight in Tds return in which section.
dear sanjay
The transporters are coming under “contract”, so 1% for indivijual and 2% for pvt ltd transporters. one thing u have to remember that if they submit their invoice alongwith all supporting documents then no need to deduct TDs but for service charges and serv tax , we have to deduct TDS
dear suresh/shabana / sushil
It’s a must for every person to have PAN card, if they dont have we hav e to deduct @ 20% , but there is a limit for contractors for FY 2010-11 (1) From april to june 2010 , if any transporter provides single bill of rs.20000/- or Rs.50000/- aggregate for whole year the we have to deduct TDS @ 1% for indivijual ownership and @2% for pvt ltd concern.(2) /from july 2010 itself single bill of Rs.30000/- and aggregate of Rs.75000/- we can deduct TDS.
For eg any transporter raised only bill value is Rs.12000/- for whole fy 2010-11 , then no need to deduct TDS .
is there any TDS for the payment of Rs.2,50,000/- for supply of buses for pickup and dropping of the students from various places to college and back to their places. and can we give the cheque to the individual name, even he submit the bill in the form name?
Sir
I am charging transportation charges in our bills.
I have a proprietary co. the turnover of the co is 25 lacs.
Can I deduct tds on transport charges.
I am charging tpt like 700/- 1000/- 1400/-.
regards
Dear Sir,
Please tell us the TDS liability if an employee not provide there PAN no.
Salary detail of employee P.A. are as under:
Net Basic HRA Conv Ed.All Medi. All. Prof All. Over Time
102315 18000 15000 0 10800 3600 24000
Rent Paid Rs.200 p.m. & LIC Premium paid 10000.00
Can he claim deduction of HRA, Conveyance Allowance & 80C.
Thanking You
Regards,
Ratan Agarwal
If payment to transporter above rs.75000 within 1 year (F.Y.2010-2011).Whether T.D.S. deducted OR not?
sir in my govt office a lady is working as loading/unloading contractor. she has privided PAN. and thus TDS not being deducted, how is her tax calculated and which return is to be give4n by (1) firm (2) the contractor
What is the limit amount tds deduction from transpoter they provide PAN number dated from 1.04.2010.
I want to confirm that the TDS rate for transportation is applicable from 01.04.2010 cause as per amendment TDS on transportation is not applicable till 31.03.2010 & after that it shall be 20%. It is totally confusing please clarify.
plz. send me the answer of my querry asked above as soon as possible at my email [email protected]
ek bande ki apni 1 pessenger transport business h, wo apne clients k vehicle rent per deta h or hire chares after deduction of tds u/s194c receive kerta h, kyuki uska unke sath contract bana hua h.
wo ye vehicle khud rent per receive kerta h lekin uska apne kisi creditor se koi contract nhi h isliye wo tds nhi katata unhe full payment ker raha h.
uska rent pay kerna n hi to 194c m ata h(kyuki contract nhi), or n hi 194-i m ata h(include only land-building, furniture & fixture and plant & machinery).
use tds katna chahiye ya nhi..?
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.(f.y.2010-2010)
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
sir,
i am working is a automobiles company as a accountant post. plz give me wright solution of my qustions what tds rate deducted in transportaion in f.y. 2010-11
plz give me soon a sutaible answer in my mail id.
thanx…..
I heard that if it is a propritor ship concern the transporter could provide the PAN copy of the proprietor and get full amount. If it is true how we could measure the relation between the PAN holder and transport.
I am working as an accountant in a retail Tiles & sanitary wear showroom. I would like to know about the TDS on freight & service tax payable on transport by road. Please help me. Please find below bifurcated example and answer me what I want to do in this case and also give me the related sections in IT & Service tax.
Example :- Ocean freight = 46000
Service Tax 10% = 4600
Cess 2% = 92
HEC 1% = 46
——-
Total = 50738
Road freight = 25702
——-
Grand Total = 76440
=======
(Please explain me the above case by below given reasons.
1. If the transporter having PAN number?
2. If the transporter have not PAN number?
2. Our showroom had turnover above 40lakhs. If in the case of below 40lakhs turnover what to do?
3. If the transporter had not given the bifurcation of service tax and only writing the total freight in the receipt?)
sir,
our company is seed company, we paid Rs 35000 below and above, what will be position of TDS
Sir,
My company is pharma co.we have pay different type of payment to transportor such as EXL, TCI, XPS, GATI.
My query is whether we should deduct TDS or not if not please explan. Which type of transport contractor covered under this section.
My E.Mail ID :- [email protected]
Regards
Sandeep Kumar Verma
IS TDS ON CAR HIRE CHARGES IS COVERED UNDER TDS ON TRANSPORATION CHARGES DURING 2010-11
If payment to transporter above rs.75000 within 1 year (F.Y.2010-2011).Whether T.D.S. deducted OR not?
sir ,
We are Doing trading of agri item
{onion,vegatable } item and we are
paying lorry freight 20 thousand above
the question is
1.I want to cut TDS in the freight which
I am paying to the lorry driver?
2.In agri item TDS not applicable ?
kindly give us a solution ,thx
Dear Sir,
we are not deduct TDS after providing PAN from Transporter. Is any return is compulsory to file with TDS department if yes then in which return shal be filed. Please advise me.
Thanks & Regards
Manoj Kumar
if one person make payment of Rs 10000 to transporter and transporter do not furnish his PAN then whether to deduct TDS at 20% or no TDS deduction as limit of 30000 or 75000 has not exceed ?
sir, if kisi employee ne PAN No. ke liye apply kara hua hai, then uska TDS kitna katega? kya aisa ho sakta hai ki PAN card ka acknowledge letter attach kar diya jaye.
Transport department haryana is govt. department and picking HSD (Diesel) from IOC, Terminals through its own tankers. The IOC issue a notice that PAN may be given to the IOC otherwise TDS @ 20 percent will be deducted from the freight charges being refunded to the transport department, haryana.
i) is TDS is leviable on Govt. departments. if yes under which section.
ii) PAN is issued to individuals, we are ready to give TAN No. IOC but IOC is not accepting it. Is PAN is mandatory ? can a Govt department be issued PAN instead of TAN.
Transport department haryana is govt. department and picking HSD (Diesel) from IOC, Terminals through its own tankers. The IOC issue a notice that PAN may be given to the IOC otherwise TDS @ 20 percent will be deducted from the freight charges being refunded to the transport department, haryana.
i)
Sir, My company have given a EPC contract to BHEL. They are transporting the material at our factory and erecting the same. In our billing schedule, we have separate amount for freight also on per ton basis.
BHEL is making 1 invoice in which he is showing supply amount and freight amount separately. BHEL must be arranging transport from outside as it is not transport company and charging the same from us on per ton basis. Obviously, BHEL has given us the PAN.
My query is whether we should deduct TDS on this freight amount..in my opinion i should now..i require ur opinion…with some explanation.
if transporter give the PAN no. but we are deduction amount. what we do.