Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2013 A assessee hires a truck for transportation of goods and pays freight of Rs. 2250000/- to truck owner . Is hiring of truck and pays freight to truck owner comes u/s 194c. If yes then as per 194C assessee is not liable to deduct TDS if transporter furnushes PAN or assesse files TDS return without deducting TDS.. Plz Clarify

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
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15 December 2013 where aee has hired a truck then it falls under 194I not under 194C. Where you dispatch your goods by way of transport, custodian is transporter, in that case it falls under 194C. But in your case, you have custody of truck and you will use truck for your own transportation or for any other purpose. Hence, TDS is liable to be deducted under 194I @2% ( as truck is considered as hiring of plant and machinery)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 December 2013 Since you are paying freight and not rent section 194C will be applicable and TDS not required to be deducted if PAN is provided by transporter. In your TDS return you will have to quote the PAN of transporter and show the transaction with Nil TDS amount.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 December 2013 will depend on whether you have just hired a truck for transporting goods on your own or whether you have hired services of the truck owner to transport your goods. In case one Mayur's advice should hold good. In case 2, Sanjay ji's advice.