Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
23 July 2015A company paying transport charges to Transport Contractors who having less than 10 Vehicles. They have given Declaration also.
The contractors arranging outside vehicle also issuing their own LR/Bill and thus the company paying more than 1 cr during the FY.
In this case company is not deducting TDS based on declaration given by contractor.
weather TDS is to be deducted or not.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 23 July 2015
As i understand, non-deduction of tax is applicable for the benefit of small transport operators provided they OWN less than 10 vehicles and give a declaration to that effect. Since you say that they operate hired trucks also (in which case they r not the owners), I would think that such transactions are not covered under exemption and TDS is applicable.
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 25 July 2015
In his regard, how company knows wheter transporter is owner of vehicle or not
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 25 July 2015
I said so in this case bcoz u said outside vehicles are hired. if u do not know that such vehicles are hired and if u act in good faith provided u have received the declaration & PAN from the transporter, u r not at default if u dont deduct TDS, i think.
CAclubindia
