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Tds on air transport charges

ANUP GUPTA (KEEP SMILING fcaanupgupta@gmail.com) (303 Points)

05 July 2012

HELLO EXPERTS,

1.PLEASE CLARIFY THAT WHETHER WE ARE REQUIRED TO DEDUCT TDS ON AIR TRANSPORT CHARGES?

2. WHETHER EXEMPTION U/S 194C IS AVAILABLE TO GOODS TRANSPORTER AGENCY ONLY OR TO ANY TRANSPORTER?

WE HAVE A PAN NO. OF ASSESSEE PROVIDING AIR TRANSPORT SERVICE TO US

PLEASE QUOTE ANY CASE LAW TO SUPPORT THE ANSWER.

THANKS IN ADVANCE

HAVE A NICE DAY

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3 Replies

pahuja (C.A Final Student ) (472 Points)
Replied 05 July 2012

HI Anup

if any transport contractors provided Pan No. to Deducter then TDS is not applicable. Transport contractors means Tranport on truck on road. here is not difine which type of service provide. if trasport by truck than tds is not applicable.

if transport contractores service provide as air freight , rail freight , then tds is applicable.

Thanks & Regards

Suraj pahuja

pahujasurajandassociates @ gmail.com

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Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 05 July 2012

As per the amended section 194C, through Finance Act (2) of 2009, No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.