is TDS applicable to transport contractor

This query is : Resolved

santi mallik (Querist)
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06 October 2009 Dear,

we ve hired the vehicle(i.e scorpio/indica/staff bus for our company.

so is tds applicable on these mentioned transport service w.e.f 01.10.2009.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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06 October 2009 Yes applicable.

The exemption is applicable for goods carriage only. Not applicable if the vehicle is for transport of passengers.

You may visit the following link for further input : -

https://www.caclubindia.com/experts/experts_message_display.asp?group_id=256915

You may also check, whether you are falling under section 194I

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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06 October 2009 agree

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santi mallik

santi mallik (Querist)
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06 October 2009 dear ,

we are deducting tds u/s 194 c(2%).so could u pl. confirm for tds deduction is still applicable on above transportation chgs.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 October 2009 Since the vehicles mentioned by you are not goods carriage as defined in section 194C, the exemption is not applicable in your case. Please continue deducting TDS.

Further, the rate has undergone change w.e.f. 01.10.09.

If the deductee is indivisual/huf 1%
in any other case 2%