TDS ON TRANSPORT CHARGES

This query is : Resolved

Santosh D. Devkar (Querist)
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06 April 2009 The dealer is purchasing material from the other states, the transport charges are paid to the owner of vehicle but the bill is in the name of transporter who works only on his commission. does in this case tds u/s 194c is to be deducted of the transporter who acts only for commission.

Mukund

Mukund (Expert)
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07 April 2009 Yes You have to Deduct TDS U/Sec 194C if you make payment as per LR of Transporter
otherwise ask your supplier to send direct material without LR & only one letter for Freight amount with Truck owner then you not lible to deduct TDS but if the same Truck No repeat in year & cross the limit of TDS U/Sec 194C then you have to deduct TDS from That Truck Driver for the entire amount.