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
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%
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%
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.
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
CAclubindia
