Tds

This query is : Resolved

saurin (Querist)
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12 January 2012 If there is a courier company (say X ltd) which transfers document as well as goods for Y Ltd , and Y ltd transfers all the transaction with X ltd to Postage and telegram and the total transaction amount is 500,000 ....X ltd Quotes PAN on all bills...

Query is : Is Y ltd liable to deduct TDS of X ltd under section 194C...?

and if yes then what is difference between FREIGHT and COURIER expense...?

as the section 194c of the act does not include the deduction of tds for GTA (Road transport agency if provided PAN)

Please provide provisions or explaination of ACT...

VIKAS KUNDU

VIKAS KUNDU (Expert)
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13 January 2012 Dear do not mingle the provisions of IT Act, Act clearly says that no TDS shall be deducted if u r making payment to GTA. in the present case u are making payment to courier co. not to GTA and TDS shall be deducted u/s 194C @2% on the gross amount paid to co.