Tds on transporters u/s 194c

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AKANKSHA (Querist)
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01 June 2015 DEAR ALL,

I WANTED TO KNOW WHETHER TDS IS LIABLE TO BE DEDUCTED OR PAID IF I AM A COMMISSION AGENT WHO HIRES TRUCKS OF VARIOUS TRUCK OWNERS TO GIVE TO OTHER PARTIES, AS I DONT HAVE TRUCKS OF MY OWN.THE AMMENDMENT DOES NOT MAKE THIS FACT CLEAR AND HENCE IT IS VERY DIFFICULT TO INTERPRET.PLEASE HELP

ramprasad

ramprasad (Expert)
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02 June 2015 WEF 01/06/15, the benefit of non deduction available only to the truck owners (not more than 10)

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AKANKSHA

AKANKSHA (Querist)
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02 June 2015 Dear Ramprasadji,
Thanku for your reply, however the new ammendment is not clear in terms of deduction in case of transport commission agents. For example if my client hires a vehicle for third party and receives the freight charges from the party and subsequently deducts commission from the same and pays the remaining amount to the truck owner, so in such case is my client liable to deduct tds on the freight charges paid to the truck owner if the truck owner owns more than 10 trucks?According to my opinion my client will be liable to deduct TDS even if he is acting in the capacity of an agent.

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ramprasad

ramprasad (Expert)
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03 June 2015 If you are paying to truck owner more than 10 deduct tax. Else get the PAN photo copy nd declaration then no TDS.

The amendment gives benefit of non deduction in case of payment to truck owner not owning more than 10. It only refers to whom we are making payment and not one who is making the payment.

kamal p keswani

kamal p keswani (Expert)
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09 June 2015 If you are liable to deduct TDS i.e. PVT ltd co or Partnership firm or Individual/HUF covered u/s 44AB tax audit, then you will have to follow provisions u/s 194C which is to deduct tax if transporter has more than 10 trucks or take declaration and collect PAN copy whatever be the case.

In your case, your become the deductor because you are making payment so above provisions will apply as be the case.

AKANKSHA

AKANKSHA (Querist)
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11 June 2015 I also want to know if I am a transporter acting as a agent..not owning any goods carriages..is liable to get his TDS deducted from transporters who are making payment to me? Or providing declaration in this behalf would be enough?