Payment/bill of transporter need to show in tds return
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 May 2016
If bill amount of transporter is less than threshold limit or transporter provide declaration so need to mentioned such transactions in TDS return whereas tds is nil.
31 May 2016
absolutely no need to show it.
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2016
Pls give your reply according to notification came after 31.05.2015
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2016
waiting for reply in respect above query
09 August 2024
As of the notification dated 31.05.2015, there are specific requirements for reporting payments made to transporters under the Income Tax Act, especially regarding TDS (Tax Deducted at Source) obligations. Here’s how you should handle such transactions in the TDS return:
### **Key Points to Consider:**
1. **Threshold Limit for TDS on Transporters:**
- As per the Income Tax Act, TDS on payments to transporters is required if the payment exceeds ₹30,000 in a single transaction or ₹75,000 in aggregate during a financial year. This is stipulated under Section 194C of the Income Tax Act.
2. **Transporter Declaration:**
- If the transporter provides a declaration in Form No. 15-I (for individual or HUF) or Form No. 15-IA (for others) stating that they have opted for the presumptive taxation scheme under section 44AE or have furnished their PAN, TDS may not be required. This is often provided when transporters are not required to file returns or are under the presumptive tax scheme.
3. **Reporting in TDS Return:**
- Even if TDS is not deducted due to the transaction amount being below the threshold or due to a valid declaration by the transporter, you are still required to report these transactions in the TDS return. This is to ensure compliance and for proper accounting of transactions.
### **Steps to Report Transactions in TDS Return:**
1. **Filing TDS Returns:**
- When filing TDS returns (Form 26Q for non-salaried payments), you must include all payments made to transporters regardless of whether TDS was deducted or not.
2. **Filling Details:**
- **PAN of Transporter**: Ensure you enter the PAN of the transporter if provided.
- **Transaction Amount**: Report the total amount paid to the transporter in the relevant section of the TDS return.
- **TDS Amount**: For transactions where TDS is not deducted, enter the TDS amount as ‘NIL’.
- **Reason for No Deduction**: In the remarks or appropriate field, you can mention the reason for no TDS deduction (e.g., the payment is below the threshold or the transporter has provided a valid declaration).
3. **Maintaining Records:**
- Keep a record of all declarations received from transporters, as these will be necessary for compliance and for responding to any queries from the tax authorities.
### **Example:**
If you have a payment to a transporter of ₹25,000, and it is below the ₹30,000 threshold, you are not required to deduct TDS. However, you still need to:
1. Include the payment in your TDS return.
2. Specify that no TDS was deducted because the amount is below the threshold limit.
### **Notifications and Updates:**
- Ensure that you are following the latest updates and notifications from the Income Tax Department, as rules and limits may change. You can check for the latest notifications on the [Income Tax India e-Filing portal](https://incometaxindiaefiling.gov.in) or consult with a tax professional for any updates beyond 31.05.2015.
### **Summary:**
- **Threshold Limits**: TDS is required if payments exceed ₹30,000 per transaction or ₹75,000 in aggregate.
- **Declaration**: If the transporter provides a declaration, TDS may not be required, but transactions still need to be reported.
- **Reporting**: Report all payments to transporters in TDS returns, even if TDS is nil.
- **Compliance**: Maintain records of declarations and ensure accurate reporting in the TDS return.
By following these guidelines, you ensure that all transactions are properly reported and compliant with the TDS requirements.
### **Key Points to Consider:**
1. **Threshold Limit for TDS on Transporters:**
- As per the Income Tax Act, TDS on payments to transporters is required if the payment exceeds ₹30,000 in a single transaction or ₹75,000 in aggregate during a financial year. This is stipulated under Section 194C of the Income Tax Act.
2. **Transporter Declaration:**
- If the transporter provides a declaration in Form No. 15-I (for individual or HUF) or Form No. 15-IA (for others) stating that they have opted for the presumptive taxation scheme under section 44AE or have furnished their PAN, TDS may not be required. This is often provided when transporters are not required to file returns or are under the presumptive tax scheme.
3. **Reporting in TDS Return:**
- Even if TDS is not deducted due to the transaction amount being below the threshold or due to a valid declaration by the transporter, you are still required to report these transactions in the TDS return. This is to ensure compliance and for proper accounting of transactions.
### **Steps to Report Transactions in TDS Return:**
1. **Filing TDS Returns:**
- When filing TDS returns (Form 26Q for non-salaried payments), you must include all payments made to transporters regardless of whether TDS was deducted or not.
2. **Filling Details:**
- **PAN of Transporter**: Ensure you enter the PAN of the transporter if provided.
- **Transaction Amount**: Report the total amount paid to the transporter in the relevant section of the TDS return.
- **TDS Amount**: For transactions where TDS is not deducted, enter the TDS amount as ‘NIL’.
- **Reason for No Deduction**: In the remarks or appropriate field, you can mention the reason for no TDS deduction (e.g., the payment is below the threshold or the transporter has provided a valid declaration).
3. **Maintaining Records:**
- Keep a record of all declarations received from transporters, as these will be necessary for compliance and for responding to any queries from the tax authorities.
### **Example:**
If you have a payment to a transporter of ₹25,000, and it is below the ₹30,000 threshold, you are not required to deduct TDS. However, you still need to:
1. Include the payment in your TDS return.
2. Specify that no TDS was deducted because the amount is below the threshold limit.
### **Notifications and Updates:**
- Ensure that you are following the latest updates and notifications from the Income Tax Department, as rules and limits may change. You can check for the latest notifications on the [Income Tax India e-Filing portal](https://incometaxindiaefiling.gov.in) or consult with a tax professional for any updates beyond 31.05.2015.
### **Summary:**
- **Threshold Limits**: TDS is required if payments exceed ₹30,000 per transaction or ₹75,000 in aggregate.
- **Declaration**: If the transporter provides a declaration, TDS may not be required, but transactions still need to be reported.
- **Reporting**: Report all payments to transporters in TDS returns, even if TDS is nil.
- **Compliance**: Maintain records of declarations and ensure accurate reporting in the TDS return.
By following these guidelines, you ensure that all transactions are properly reported and compliant with the TDS requirements.
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