Sec 194c transporter case

218 views 4 replies

Robin Singla

15 Points Joined July 2016

Dear Experts, I am facing the problem of non deduction of TDS on payment of Transport Union. Co. hire the trucks from transport union, union send the truck but truck is not owned by union. The driver came with a bill named of Transport Union. Co. pay him cash. Till this first quarter end Co. has paid these truck drivers around 6 lakh. Co. book the bill on Union name. Union is partnership firm and has pan no. too. If we deduct the TDS, union will not send trucks. what should i do.

Entry in books: Carriager & freight Dr. Tansport Union Cr.

Transport Union Dr. cash Cr.

Please help.

Replies (4)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

Since the service provider is not the owner of the vehicle, provisions of TDS do attract. As the transporter is a firm, you need to deduct tax @ 2%
Try to convince them saying that you would issue TDS certificate and they can claim credit of tax deducted. If they do not agree,options are only to bear the TDS portion or to discontinue their services.