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tds on contract - transport

sathis (accounts executive) (311 Points)

03 November 2009

Dear Friends,

We are hiring one vehicle from ABC Travels (for passenger). Is it coming under transport means come under Tds on contract. We are paying partly. So Shall we deduct tds on contract @ 1% or 2 % or nil. With effect from 01 Oct 2009. Actualy the travels agent having PAN and Service tax Regn no also. Please give details.

Advance Thanks

Urs

Sathis

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9 Replies

L KANAGARAJ (Assistant Manager-Finance) (615 Points)
Replied 03 November 2009

As the usage is for the purpose of carring employee/ passenger you have to deduct under 194C. and

If the Travel Agency having PAN No. in the name of Individual the TDS rate is 1% ,

If it is a Company / Firm means the TDS rate is 2%, w.e.f.01.10.09.

Correct me if iam wrong.

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(Guest)

Here is what u need 2 knw : 1). If pan is quoted by transporter contractor - No TDS. 2). If pan is not quoted by transporter - TDS @ 1% in case of Individual or 2% in case of any other entity Hence, in your case, No need to deduct any TDS bcz vendor already provided you pan no.

Rajat Dhingra (Student) (32 Points)
Replied 03 November 2009

hi..whether the provision of tds is applicable to transporters or on transport contracts???

i have read everywhere as transport contracts....kindly tell me...

L KANAGARAJ (Assistant Manager-Finance) (615 Points)
Replied 03 November 2009

If the Transporter is Goods transporter and if quote their PAN No. the TDS rate is NIL. Otherwise, what i have mentioned will be applicable.

(Guest)

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L KANAGARAJ (Assistant Manager-Finance) (615 Points)
Replied 03 November 2009

Please refer the attachment.

Attached File : 35 tds chart 1 10 2009 onwords.pdf downloaded: 370 times

CA Rahul Jain (CA) (1162 Points)
Replied 03 November 2009

tds on transporters is nil if they provide PAN

transporters in respect of income tax and service tax refers to the plying, hiring and leasing of goods.

as the contract is for passengers, tds shall be deducted u/s 194C

1 Like

Balaji (Research Community Strategist) (27 Points)
Replied 24 November 2009

TDS has to be deducted U/s 194 c ,as it is a contractual bill, as it is transport of passengers and not good. so TDS of 1% if individual and 2% for companies will be applicable.

CA AJAY SONI (PROPREITOR) (39 Points)
Replied 19 June 2010

In case of others if PAN is not Quoted TDS @ 20% is deductible but in case of Contractor TDS @ 1 or 2 % is deductible if PAN is not Quoted.Please explain whether this is correct or not.