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TDS Not Decuction

Sunil Dhiwa (Freelance for Tally & Accounts) (103 Points)

22 January 2008

Dear All

If A Trasnporter Hire Trucks of other transporter

in this transaction is he lible for TDS , if he liable then what rate he has to deduct or if he not paid the TDS what is the income tax liability .

waiting for replys

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5 Replies

Amit Sharma (article) (2677 Points)
Replied 22 January 2008

It will come under sec 194C of IT act of 1961 and rate at deduction 2.244%

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Irshad (Article) (1426 Points)
Replied 22 January 2008

Expecting few more replies....

CA S Sundararajan (CAO) (536 Points)
Replied 22 January 2008

If the payment made to hime exceed Rs 20,000 ,Tax has to be deducted u/s 194 C and rate will vary with type of contractee and payment made to him. For ex: Person: Indl,HUF,BOI& AOP, payment ,payment made morethan 10 lakhs - 2.266 % and lessthan 10 Lakhs -2.06%. Person : Firm Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06% Person:Company Taxable income exceed Rs 1Crore-2.266% Taxable income not exceed Rs 1Crore-2.06%

Irshad (Article) (1426 Points)
Replied 13 February 2008

Expecting few more replies.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 13 February 2008

Yes.TDS has to be deducted as it comes under 194 C. When a transporter hires a truck from another transporter, it is a contract to use that truck for a certain period (usually definite), for which monetary payments are made on an agreed basis.This agreement is classified as "Contract". Such payments are subject to TDS. As regards rates of TDS, its been answered by Mr.Sundararajan.