Tds on freight

This query is : Resolved

Sumiti Jain (Querist)
Follow

26 May 2012 My Client is a Transporter receiving money from respective parties for transporting their goods and paid the freight.

E.g. Rs. 45000 is recd. from the party and paid Rs. 43000 for the frieght for various trucks..

Now the que is what is the liability of my client regarding TDS deduction and regarding the TDS Return is PAN No. of various Transporters are taken?

Is TDS deducted on Rs.43000?

Is In Profit & Loss A/c Gross Receipts shown Rs. 45000 and exp. is shown Rs. 43000?

Please clarify the facts

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
Follow

26 May 2012 In terms of section 194c of income tax act, no need of tds if PAN is obtained from the transporter .

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
Follow

26 May 2012 yes...

NO TDS DEDUCTED ON TRANSPORTER..IF PAN PROVIDED..

IN CASE NO PAN TDS IS 20% DEDUCTED.

Upgrade to CAclubindia Pro. Subscribe Now!

Sumiti Jain

Sumiti Jain (Querist)
Follow

26 May 2012 Is there any service tax liability also?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

26 May 2012 1. The transporter will have to obtain PAN from other transporters.

2. The gross receipts shall be Rs. 45,000 and expenses shall be Rs. 43,000.

3. Reverse charge is applicable in this case and service tax will have to be paid. Service tax will be calculated as under:

Freight*25%*12.36%