We run a transportation firm(Individual)and does movement of goods through rail and road. Our turnover is more than 1 Cr. So do we fall under the Section 194C of Income Tax Act?
Is our clients liable to deduct TDS for the payment made to us? If yes, then how much?
23 April 2015
As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.
This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
23 April 2015
We are providing all the necessary documents including PAN Card. But, transactions per clients might greater than Rs.75,000/- per financial year. Also, we provide movement of goods through containers (railway).
23 April 2015
Sub section 6 of Section 194C is a specific provision. The limits of 30000-75000 have been prescribed under sub-section 5 are not applicable in the case of a transporter. . Further the definition of "work" does not cover transportation by railway as per explanation (iv)(c) to Section 194C. So, your clients are not liable to deduct TDS. .
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