Tds on gta for the fy 2014-2015

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RameshKumar

RameshKumar (Querist)
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19 June 2015 I want to know if there is any need to deduct Tds on gta payments for the financial year 2014-2015

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 June 2015 If the expenses is booked in FY 2014-15 and payment is made now then there is no need to deduct TDS.

Provision of Section 194C is attracted in the given case. Payments to transporters attract Section 194C. Earlier if transporter provided their PAN, TDS was not required to be deducted. Now there is an amendment in the provisions of section 194C of the Act to expressly provide that the relaxation from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e. a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

This amendment is applicable from June 1, 2015.

srinivasan

srinivasan (Expert)
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19 June 2015 Yes w.e.f. 1-6-2015 you need to deduct TDS u/s 194C.

However the exemption can be given if the transporter gives a declaration stating that (a) he does not own more than 10 goods carriage in the financial year and (b) provides you his valid PAN duly certified.

please note that in many cases the transport agency does not own the truck, but arranges transport by pooling the trucks. In such cases the above exemption cannot be given.

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