25 April 2012
ONE OF THE VENDOR IS DECLARING ITSELF AS A TRANSPORTER.THE AGREEMENT WITH THE TRANSPORTER IS OF DOOR TO DOOR EXPRESS CARGO DELIVERY.THE TRANSPORTER IS NOT CHARGING SERVICE TAX & THE CO. PAYING FREIGHT IS DEPOSITING ON HIS BEHALF. ACC. TO ME IT ATTRACTS TDS.BUT THE TRANSPORTER IS SAYING IT IS COVERED U/S 194C(6).PLEASE ADVICE ME OF THE ABOVE ISSUE? PLEASE GIVE LOGICAL REPLY & PLEASE HELP ME HOW TO PROVE THE VENDOR THAT TDS HAS TO BE DEDUCTED.
26 April 2012
As per provision of section 194C sub section (6) is as under :-No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.further the meaning of goods carriages is defined under sub section 7 of section 44AE according to this the goods carriage means the expressions “goods carriage” and “heavy goods vehicle” shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988); from the above it is clear this exemption is available only to those assessee who plying , running & hiring of vehicle, however in your case the agreement is for delivery of article from door to door service and if you paying for the delivery of these items. than it is not covered under sec. 194C(6).
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