TDS Return

This query is : Resolved 

02 June 2008 Dear Colleagues,

My Client is indulged in Transport business.

He pays freight charges to many lorry drivers

To comply with TDS Provisions, my client deducts TDS from payment made to lorry drivers. But, most of the lorry drivers does not have PAN Numbers (obviously)...

Now the client has to file TDS Return every quarter. But, due to Non - availability of PAN, he is unable to file the return.


What to do?

Also tell me, whether TDS provisions are applicable to the client for the above transaction under 194C?

Please do quote relevant circular/notification also.

03 June 2008 Clueless on the 1st part of the question. Hope, Govt of India should first make it mandatory to have PAN before applying for registration of a vehicle/for a driving licence.

The explanation to sec 194C says that carriage of goods and pasangers by any mode of transport except railways is covered under the term work. Your case certainly hit by 194C.

04 June 2008 Dear Colleague

One clue i can provide you is to split the payments made with PAN # in required numbers to make the return comply with the 85% requirement.
Eg: Suppose your client has 100 items in deductee details which contains 60% having PAN and Bal 40% not having PAN. Split each transaction in the 60% into 10 transactions which will make 650 deductee details with only 50 having no PAN. Thats how it should be resolved. Thereis no other go.


04 June 2008 Fantastic Idea. Thanks Mr Srikanth.

I would also like to thank Mr Naik for the valuable answer



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries