Transporter category

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2011 I am transporter providing transportation to various type of customer by road what should be my taxable service

Goods Transport Agency services

Or
Transport of Goods by Road

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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25 October 2011 Transport of Goods by Road, GTA
In order to help from both angles the deductee and deductor as regards TDS on transportation charges, a few notable things are as mentioned below
Since the time Government has notified vide amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.
This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
Now here the person who pays transport Charges were facing the dilemma whether they are required to file TDS return in respect of Transport charges Paid to the Transporter who furnished there PAN.
We have summarised below few frequently asked questions and answers which arise in respect of deduction of TDS on transport Charges and in respect of TDS return filing requirement when no TDS been deducted on Transport Charges Paid to the Transporters who have furnished their PAN

Question 1- What is the rate of TDS on Transport Charges if PAN is provided?
Answer:-
Rate of TDS shall be if PAN is not provided from 1.10.2009 to 31.3.2010
1. 1% if the payee is individual or HUF.
2. 2% otherwise
Rate of TDS After 31.03.2010 if PAN is not provided
After 31.3.2010 the rate shall be 20%.

Question 2- What will be the rate of TDS on Transport Charges if PAN is provided on or after 01.10.2009?
W.e.f. 01.10.2009 TDS will be deducted at NIL rate if Transporter provides PAN.

Question 3- Do Assessee need to mention details of Transport Charges Paid where Transporters provided PAN and no TDS been deducted?
Yes. Assessee need to mention the same in TDS return. Government has recently release Return Preparation Utility (RPU version 2.2) and FVU version 3.0 which contains the field in respect of Transport charges where TDS been deducted at nil rate.
Transporter transaction where no deduction has been carried to marked separately as “T”. Flag “T” to be mentioned in the field for lower or no deduction at deductee detail.