21 August 2017
Company has receievd GTA services/Freight Bills amounting to RS. 450000 (Break up: 95000+45000+75000+75000+46000+54000+55000) for 1st quarter of FY 17-18 i.e april 17 to june 17. The GTA provider has mentioned PAN NO on bill and moreover he has given undertaking of not having more than 10 Vehicles during the year. I had deducted tds @ 1% on GTA for proprietorship. but the GTa has argued to refund the same and asking for reason of deduction. i have replied that since the value of services provided by GTA is more than Limit under 194C and to on safer side i have deducted TDS. Please reply in light of related provision of the IT Act, What is to be done and what is proper way of booking such expenses.
21 August 2017
You should not have deducted TDS since the Transporter has given the declaration any way from next month onwards dont deduct it for this month if you have deducted any TDS Please reverse
CAclubindia
