07 November 2010
Dear Experts, If a sole proprietorship firm pays carriage charges to transporters is the payment liable to deduction of TDS under the following circumstances: 1)If the single payment is less than RS. 20000/-
2)Even if the single payment is less than Rs.20000/- but the payment to a specific transporter exceeds Rs. 50000/- during the previous year.
07 November 2010
First of all check the threshold limit u/s 194C--
Upto 30.06.2010
Single Bill Rs 20000/- Annual Payment Rs 50000/-
From 01.07.2010
Single Bill Rs 30000/- Annual Payment Rs 75000/-
So if single bill is less than Rs 20000/- deduction of TDS is not required. If payment exceeded Rs 50000/- before 30.06.2010 deduct TDS if after that then limit is Rs 75000/-
08 November 2010
All the points of Mr. Sanjay Gupta is correct however if PAN is provided by transporter than no TDS is required. All the transporter transaction on which TDS is not deducted due to availability of PAN are required to mention in TDS return from June 2010 to Sep 2010 quarter
08 November 2010
Hi, I agree with other experts. TDS on transporter is applicable to proprietorship only when they are under the provisions of Tax Audit (i.e. 44AB cases)
CAclubindia
