TDS ON CONTRACTOR
This query is : Resolved
21 June 2010
DEAR FRNDS
THERE IS A CONFUSION ON TAKING TRANSPORTER THAT
WHETHER WE REQUIRED TO DEDUCT TDS IF WE ARE PAYING FREIGHT TO TRANSPORTER MORE THAN 30000 RS . WHILE ON BILTY PAN IS SHOWN.
THANKS
THERE IS A CONFUSION ON TAKING TRANSPORTER THAT
WHETHER WE REQUIRED TO DEDUCT TDS IF WE ARE PAYING FREIGHT TO TRANSPORTER MORE THAN 30000 RS . WHILE ON BILTY PAN IS SHOWN.
THANKS
21 June 2010
As per income tax tds rules, If PAN is shown on bitly then there is no need to deduct tds even if amount exceed threshold limit.
But as per my advise, If there is a contract between you and transporter and he is submitting bill at the end of month for all trip made during the month, then TDS will be deduct.
But as per my advise, If there is a contract between you and transporter and he is submitting bill at the end of month for all trip made during the month, then TDS will be deduct.
21 June 2010
"But as per my advise, If there is a contract between you and transporter and he is submitting bill at the end of month for all trip made during the month, then TDS will be deduct. "
Bansal Sir i am little confused over your above statement. Can you please clarify, Why?
Bansal Sir i am little confused over your above statement. Can you please clarify, Why?
21 June 2010
in case of confusion better to deduct tds to avoid any penalty.
21 June 2010
But Prakash Ji Why deduct TDS from transporter who has PAN?
21 June 2010
Even if bills are raised on periodical interval in case of an ongoing contract, still it is a credit/payment to the account of the contractor during the course of business of leasing/plying/hiring of goods carriage and the exemption from TDS is available.
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21 June 2010
I completely agree with the views expressed by Naik Sir.
21 June 2010
As per our concern, the logic before non-dedution of tds on transporter if Pan is available on bilty, to provide assitance to small transporter or that transporter who are providing service to deductee non-recurring basic.
If tds is deducted on such transporter, then he is not able to collect TDs certificate.
FOr example, One transporter of Punjab is transporting the material punjab to delhi , he provide transport bill of Rs.20000/- , you have deducted TDS , now how can he able to collect TDS cerfiticate, whether he has to come for collection of tds certificate from punjab to delhi.
Hence as per my view, if service is non-recuring nature, then Tds is not to deducted.
If there is contract between and regular supplying transport service and one consolidated bill is submitted for trips of one month.Then tds will be deducted.
If tds is deducted on such transporter, then he is not able to collect TDs certificate.
FOr example, One transporter of Punjab is transporting the material punjab to delhi , he provide transport bill of Rs.20000/- , you have deducted TDS , now how can he able to collect TDS cerfiticate, whether he has to come for collection of tds certificate from punjab to delhi.
Hence as per my view, if service is non-recuring nature, then Tds is not to deducted.
If there is contract between and regular supplying transport service and one consolidated bill is submitted for trips of one month.Then tds will be deducted.
21 June 2010
If law langauage is read as it, then no tds will be deducted. but it is better to deduct tds in case of contract of regular supply of transport services.
21 June 2010
Thanks fir your reply.
But Bansal Sir what is the course of action as per law? Is there any such contention in law as mentioned by you or its purely your own view? Please Clarify.
But Bansal Sir what is the course of action as per law? Is there any such contention in law as mentioned by you or its purely your own view? Please Clarify.
21 June 2010
These views are my own views supported by some professionals which is in my contact.
We are regurarly deducting tds on such transporter.
We are regurarly deducting tds on such transporter.
21 June 2010
No need to deduct the TDS
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