tds

This query is : Resolved

Nitesh Kumar Sharma (Querist)
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31 December 2009 Dear experts,
please tell me the latest & whole treatment of TDS for Transport services availed.
& also provide with the latest TDS Rates.
Thanks

vanisri

vanisri (Expert)
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31 December 2009 W.e.f 01.10.2009 Transport contractors engaged in the business of plying,
hiring or leasing goods carriages are out of the TDS purview if they furnish
their PAN to the person paying or crediting the amount at the time of payment
or credit as the case may be. If PAN is not furnished at the time of making
payment (payments made from 01.10.2009 to 31.03.2010) the rate of TDS is
same as for other contracts depending on the status of the recipient. Please note
that there is no exemption under TDS provisions to the contracts of hiring of
vehicles for carrying passengers.

TDS rates

TDS Rates for the Financial Year 2009 - 2010 w.e.f 01/10/2009
Limit Per Anum Nature of payment Section Section Code Individual /HUF(Hindu undivided family) Any Other Entity

5000 Interest 194A 94A 10 10

20000 Contractor/Sub Contractor 194C 94C 1 2

- Contractor/Sub Contractor in Transport business (if PAN Quoted) 194C 94C 0 0

- Contractor/Sub Contractor in Transport business (if PAN Not Quoted) 194C 94C 1 2

20000 Advertising Contractor 194C 94C 1 2

2500 Commission or Brokarage 194H 94H 10 10

120000 Rent of Plant, Machinery or Equipment 194I 94I 2 2

120000 Rent of Building,Land,Furniture or Fitting 194I 94I 10 10

20000 Professional or Technical Services 194J 94J 10 10

Note :
1 No Surcharge and Educational Cess is applicable

2 The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/
HUF transporter and 2% for other transporters upto 31/03/2010 then after 20%

3 TDS Challanas should be paid Section wise and non company & company wise.

4 The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 01/04/2010

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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31 December 2009 thanks
Payment to Transporters:
â€¢ For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
â€¢ But, if they do not provide the PAN during the payment, 1% TDS has to be made for Individuals/HUF and at 2% for others.
â€¢ Payments to transporters without deducting TDS (as they have quoted PAN) should be reported by Deductor with PAN details to the Income Tax Department in the prescribed format.
â€¢ Applicable for AY 2010-11 (FY 2009-10).
Transporters:
From 01/10/2009 all person engaged in plying / hiring or leasing of goods carriages can avail the benefit of non-deduction of tax at source on payments made to them, without reference to their status or to the number of goods carriages owned by them if the transporter furnished his permanent account number (PAN) to the person paying or crediting such sum. The payer shall furnish details of such payments & PAN to income tax authority in such form & such time limit as may be prescribed. (Note :- Such form & time limit yet not prescribed by Department.)
(Provision related to Form 15-I are become irrelevant.)

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