Tds on transporter 194 (c) 6

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2015 Dear all,
kindly provide ur valuable view on my query.
I am a transporter (though do not own any vehicle personally) I use to arrange the local trucks to carry goods to my clients factory. That factory owner use to pays me the transporting amount without deducting TDS as I had provided him my PAN no.
Now heard that budget 2015 has brought some changes regarding TDS on transporter.
Since I use to arrange truck and get full payemnt from the factory owner and pay off to the truck driver and saving my commission.
Now in light of budget 2015, pls share ur expertise knowledge.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 April 2015 https://taxmantra.com/clarification-regarding-deduction-of-tax-under-section-194c-of-income-tax-act-1961.html/

just check the link for detail discussion on same.

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2015 Kindly b case specific

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 April 2015 if you are coevered by sec 44ae then no need to dedcut tds u/s 194C from 1.6.2015 else now all other transporter not coevered under sec 44AE shall be liable to deduct tds but from 1.6.2015 and only after notified by finance act 2015 which is yet not passed by parliament

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2015 Mr Smapat I do not own any heavy vehicle in my name. Just arrange local vehicle. So am i covered by sec 44AE

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 April 2015 No. Dear you are not covered u/s 44AE. You are not exempted from deduction of TDS.

It is proposed to amend the provisions of section 194C of the Act to expressly provide that the relaxation 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 will take effect from June 1, 2015.