Prakash Babu (Asst.Manager Accounts) (36 Points)
25 October 2013We hv to make a freight payment to one of our vendor.
he is claiming the payment in his proprietor concern name ( say XYZ), with his personal PAN No. on the invoice.
Chq is going to be issued on his concern name (XYZ) do we need to deduct tds @ 2% or 1%.
He says 1% is applicable..
pl . help me.
CA Pallav Singhania
(IT System Auditor)
(33567 Points)
Replied 25 October 2013
Rates of TDS
The rates of TDS for making payment to contractors or sub-contractors for A.Y. 2013-14 are given below:
He's right...
vrushang shah
(CA Final & CS Professional Student)
(40 Points)
Replied 25 October 2013
Yes, Your concern Party is correct!
TDS to be deducted at 1%
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 25 October 2013
Just because the Sole prioprietor is running under a Enterprise name, he cannot be categorised as a firm. He is still an Individual by Income tax act, 1961.
Hence, he is charged at 1% of TDS....
RUPESH KADAM
(SR.ACCOUNT EXECUTIVE)
(28 Points)
Replied 26 October 2013
Dear All,
We should not dedcut the TDS on freight/Transportation Charges as per income tax act if the Transporer provide PAN copy if not then we sould deduct 20% TDS
Prakash Babu
(Asst.Manager Accounts)
(36 Points)
Replied 26 October 2013
Thank you all for your clarification. its clear for me now...
Mahesh Dave
(Chartered Accountants)
(54 Points)
Replied 26 October 2013
satish kumar Chauhan
(accountant)
(353 Points)
Replied 28 October 2013
Nikhil Kaushik
(Fellow CA)
(86102 Points)
Replied 28 October 2013
though we may not be required to deduct TDS on payments to transporter, there is no harm in doing so if the transporter is himself asking for deduction. It helps in better compliance all around.
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
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