10 June 2015
Budget 2015-16 Clarification regarding deduction of tax Under section 194C of Income Tax Act, 1961 from payments to transporters Under the existing provisions of section 194C of the Act payment to contractors is subject to tax deduction at source (TDS) at the rate of 1% in case the payee is an individual or Hindu undivided family and at the rate of 2% in case of other payees if such payment exceeds Rs. 30,000 or aggregate of such payment in a financial year exceeds Rs. 75,000.
10 June 2015
Section 194C of the Act has been amended to expressly provide that the relaxation from no-deduction of tax shall only be applicable to the payment in the nature of transport charges made to a contractor who is engaged in the business of transport i.e. plying, hiring, or leasing goods carriage and a person who is not owing more than 10 goods carrige at any time during the previous year and who has furnished a declaration to this effect along with his PAN.
11 June 2015
I agree with malhar behera. Mere furnishing of PAN is no longer of any use. With effect from 01.06.2015, you'll need to take a declaration and copy of PAN. The declaration can be downloaded from Google. Search for declaration u/s 194C(6)
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