As we all that, before Finance Act, 2015, the existing provisions of section 194C of the Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 1,00,000. Prior to 1.10.2009, section 194C of the Act provided for exemption from TDS to an individual transporter who did not own more than two goods carriage at any time during the previous year. Subsequently, Finance (No.2) Act, 2009 substituted section 194C of the Act with effect from 1.10.2009, which inter alia provided for non- deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer.
The memorandum explaining the provisions of Finance (No.2) Bill, 2009 indicates that the intention was to exempt only small transport operators (as defined in section 44AE of the Act) from the purview of TDS on furnishing of Permanent Account Number (PAN). Thus, the intention was to reduce the compliance burden on the small transporters. However, the language of sub-section (6) of section 194C of the Act does not convey the desired intention and as a result all transporters, irrespective of their size, are claiming exemption from TDS under the existing provisions of sub-section (6) of section 194C of the Act on furnishing of PAN.
Therefore to achieve the desired intention, Finance Act, 2015 make an amendment in the provisions of section 194C of the Act to expressly provide that the relaxation under sub-section (6) of section 194C of the Act from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN. This amendment is effective from 1st June, 2015.
Extract of Section 194C(6) are as under:
194C – Payments to contractors.
194C(6) – 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.
(Compiled by Taxguru Team)
Republished with Amendments
Is there any Form prescribed for such declaration by Transporters?
Year Rs.30000/- Trabsportation TDS Deducte Yes Or no
Sir,
plz advice me
We are transporter not having mor then 10 goods carriage but hairing trucks from market
more then 50
is tds is aplicable on payment on hairing trucks ?
we also have the diclearition of such trucks
is diclearation forms send to department ?
if a person not having any goods carriage but hairing trucks,is tds is aplicable on payment to him ?
Dear sir,
1)Our transporter having more than 10 vehicles but its not own vehicles they hire from other parties and doing transporting busies, may i deducted tds @1% on his bill submitted, please clarify this matter.
2)if we get transport facility from several transporter all having more than 10 vehicles but its bill amount not more than 30k and agreegated 75k than we are liable to dedcuted TDS from his bill amount. plz calrify .
Dear sir how much % tds deduction under this section on transportation charge.according to amendment
Xltd is Paying Frieght charges on behalf of Yltd and transporter having more than 10 vehicles who is liable to deduct the TDS?
If transport on commission basis and hiring vehicles for trader and he only have pan his payment to vehicle less than 30000
and if total pament of hiring vehicles in a year cross 70000 than shoud tds deduct
According to us this exemption is available only to those transporters who is filing their return u/s 44AE of the Act and declaring the same also. therefore if an agent owning no vehicle (providing transport through some other sub contractor) will be exempt only if he files his return u/s 44AE. Is I am right, Please reply
Good Joke
Sir, please explain what is the key concept behind the submission of PAN by the transport service provider.
What is the rate of TDS to be calculated on the truck freight where
owner is having less than 10 trucks If he does not produce copy of PAN card?
Sir my question is if suppose a small transporter (5 vehicle) i am giving payment every month payment 40,000 Rs in this case Tds is applicable or not?
Dear all,
The summary of provisions for deduction of tax on transportation is:-
1. Up to 31.5.2015 Not required to deduct TDS if the payee provides his PAN.
2. W.e.f. 1.6.2015 TDS not required to deduct if the payee’s income is subjected to provisions of Section 44AE of the I.T. Act. However, to avail this benefit, the payee has to provide the Deductor a declaration for not having more than 10 goods carrier and also copy of PAN card. Otherwise TDS deduction will be applicable.
3. In Sl. No. 2 if payee’s income is not subjected to the provisions of Section 44AE of the I.T. Act i.e. if he owns more than 10 goods carrier TDS has necessarily to be deducted by the Deductor. However, if the amount to be paid is less than Rs 30000/- or if all bills paid during the year do not crosses Rs 75000/-, TDS need not deduct.
What will be do,if transporter not submitted declaration form. Can we deducted TDS u/s 194C. PAN Available.
Please Advise.
TDS DEDUCTION REQUIRED TRANSPORTATION ON EXPORT FREIGHT CHARGES
Sir where we need to deposit the declaration so obtained from the transporter along with Pan stating that they are assessed u/s 44AE, and what is the time period of deposit of declaration. Should we deposit in Income tax or should it be filed as scanned copy with qrtly return of TDS. please suggest
TDS Return deposit time we are been wrongly entered Pan No .Plz help me (tds return is submit online) can any penitently for correction .
Dear Sir/madam
TDS Return submit online time we are wrongly entered TPT PAN in the return.we have enter Transport pan no in the return but wrongly enter roadways pan no (0000 Roadways & 0000 Transport (first name is same) ). what are we do.Plz Sir HELP ME .
I WANT TO KNOW IF TDS WILL BE DEDUCT FROM CONTAINER CORPORATION OF INDIA ON FREIGHT
IF YES ON WHICH AMOUNT OT BE DEDUCTED THE SAME
Sir,
When Transporter working on commission basis and hiring truck from outside on commission basis,and I supply to some company. How you will take this.
SIR MY QUESTION IS
THE TRANSPORTER JUST LIKE A BROKER HE IS WORKING TRUCK OWNER AND TRADER AS A MIDDLE MAN .TRANSPORT HAVE NO TRUCK HE IS JUST A BROKER . IN THAT TYPE OF TRANSPORT DEDUCT TDS OR NOT.
BECASUSE IF TDS DEDUCT THEN GO IN TRANSPORT PAN
TRUCK OWNER DEDUCT THE TDS FROM OWN FRIGHT AND ENJOY THE TDS TRANSPORT.WHAT CAN WE DO
IF TRANSPORTER GENERATE THE BILL IN MAY 2015 BUT WE PAY THE TRANSPORT BILL IN JUN 2015, IS TDS DEDUCTIBLE?
Dear Sir/Madam please tell me that is it compulsory to maintain details of transporter like Pan No, Amount paid / credited etc. in TDS return however no tax deducted against payment for transportation.
Please specify the status of Transporter as whether transporter is an individual or company or any other body. As per new amendment w.e.f. 1st June, 2015 “where such Contractor owns 10 or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with PAN, to the person paying or crediting such sum, No deduction shall be made from the sum credited or paid” so in this case please collect PAN no. and ask them to furnish declaration that they do not have more than 10 goods carriages, then there is no need to deduct tax if the above condition is satisfied but in case PAN is not furnished by the transporter, the amount is subject to WHT @ 20%.
Dear Sir
we receipt freight Inward rs.130570.00 & Freight outward Rs.90000.00 can tds is apply & please tell me how amny tds is apply? i wait for ans sir/madam
Disclaimer: Ignore above question
Sir my question, as per new amendment on 1st June, 2015, “where such Contractor owns 10 or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with PAN, to the person paying or crediting such sum, No deduction shall be made from the sum credited or paid”.
Is same provision applicable on Transport union if they have more than 10 vehciles during the previous year and furnishes PAN and declaration to the person crediting such sum?
Sir my question, as per new amendment on 1st June, 2015, “Contractor owns or less goods carriages at any time during the previous year and furnishes a declaration to thet effect along with PAN, to the person paying or crediting such sum”.
Is same provision is also applicable on Transport union if they furnish PAN and declaration to the person crediting such sum?
In case the “X” not owning any goods carriages but provide the service of transportation after taking vehicle on hire,
Whether the “X” is eligible to give a declaration with Zero vehicles?
Whether he is eligible for not deduction of TDS under section 194C?
Please clarify.
What is the TDS liability in case the transporter hires more than 100 trucks from market but owns less than 10 trucks and facilitates the supply accordingly. Do we have to deduct the TDS u/s 194 C on the whole freight amount.
Respected Sir,
kindly advised regarding tds deduction on transportation charges. we have paid transporting for export goods from Gandhidham to Mundra port on container.
Regards,
Kala
Respected Sir,
kindly advised regarding tds deduction on transportation charges. we have paid transportaing for export goods from kota to mundra port on container.
so we have used truck for transportaion for this services.
kindly advised the same
Thanks & Regards
Ashish Porwal
sir
my question is that, in how much rs.’s stamp papers the declaration is made.
SIR
my question is that, the declaration is made on stamp papers or plain papers. if stamp papers then how much rs’s stma..the transporter has provide photo copies to the payer.
Sir,
please clarify,
we have engaged with transport business but we have not own trucks. we take truck from truck owners. in this condition can we give declaration for non deduction of TDS?
–
sir,
i am Working a Manufacuring Company we have Material Send For Export Purpuse but Transporter Provide onather Agent in case we have TDS Deduct or Not Freight bill
DEar sir,
I WANTS TO KNOW ABOUT TDS DEDUCTION ON FREIGHT IF BILL ENTERED MAY MONTH AND PAYMENT GIVE JUN MONTH THEN TDS DEDUCTION ON MAY MONTH BILL PLEASE TELL ME.
IF WE COME GOODS AUR PAID BY ME THEN WE ARE TDS DEDUCTION ON THIS BILL.
Dear Sir
My question is Transport charges bill raise before March 2015 Party is deducted Tds it should right or wrong ???
If transporter submit declaration that he owns less than 10 goods carriage and he hires more than 10 goods carriages from other transporter will our company be liable to deduct tds
Dear All,
1) Transporter has given declaration He has not having More than 10 Trucks, but he mentioned in declaration we are Hiring the Vehicle from others and not Deduct TDS.
This is Valid or Not?
2) If it is Okey then what we will to Shown in E-tds return as……
Please advise me.
We are not having any truck .we are only commission agent .we place the lorry to some company but they are deducting TDs .the TDs will be deduct or not please give us reply sir
sir,
My question is that if transporter booked our consignment from party in dated 30.05.2015 but material is received us in June month, then in this situation can TDS is applicable for deduct from transporter or not ???
Dear Mr. CA. BAHUBALI D
Yes Benifit of TDS Exemption Can be take in your Giving Conditions .
But Declaration Form is Must
Mr. chandan
Tds will be deducted if following condition satisfy
1. Transporter owns more than 10good carriage, AND
2.payment exceed 30000 one time /75000 aggregate in a year.
(if 2 condition satisfy u must deduct tds irrespective of declartion]
OR
3. if he owns 10 or Less good carriage Donot furnish Declartion payment exceed limits.
In your case since he owns more than 10 G.C payment exceed 70000
Your company shall liablie to deduct tds.
Note: If you know the transporter actualy owns more than 10G.C. and furnish you false declaration that he owns less than 10. -then you shall follow such declartion
Dear All Transporters , Party Can Consignor/Consignee Will deduct TDS From your bill in case of payment More than 75000 in one year and will issue Form 16 For deduction
Dear All,
Answar of your questions are that TDS Declaration 194c you have to take from Truck owner for placing their vechicle in case you hire 50 trucks and all the truck owner have not more then ten Truck and any truck in owner by indivisule and they submit pan card also so you dont have to deduct TDS by Their Freight. But you have submitt the return of TAN Number Must
TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company. -ABC OWNS 6 TRUCKS . ABC USES SERVICES OF ANOTHER 50 TRUCKWALAS. TOTALLY HE IS USING 56 TRUCKS TO DO HIS BUSINESSS OF TRANSPORTATION OF GOODS BY ROAD. CAN HE GIVE DECLARATION AND TAKE THE BENEFIT OF TDS EXEMPTION? AND THE DECLARATION HAS TO BE IN WHICH FORMAT? –
TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company.
Sir,
please clarify,
we have engaged with transport business but we have not own trucks. we take truck from truck owners. in this condition can we give declaration for non deduction of TDS???
TDS will not be deducted if Transporter is having less than 10 Trucks. But what if Transporter place the trucks which are hired by him – in that case TDS will be deducted or not. How the use will know, whether truck is owned / hired by the Transport Company. ?????
Querry same as Lalit shah’s querry above.
ABC OWNS 6 TRUCKS . ABC USES SERVICES OF ANOTHER 50 TRUCKWALAS. TOTALLY HE IS USING 56 TRUCKS TO DO HIS BUSINESSS OF TRANSPORTATION OF GOODS BY ROAD. CAN HE GIVE DECLARATION AND TAKE THE BENEFIT OF TDS EXEMPTION? AND THE DECLARATION HAS TO BE IN WHICH FORMAT?
Regards,
CA.B.D.SHAH
9821489507, shahb_ca11@hotmail.com, shahbca11@gmail.com, shahbca11@rediffmail.com