Whether TDS on Freight paid to Transporters comes under sec 194C (payment to contractor) plz reply N also tell me about the tds rates which r applicable to freight.....
CA. Nuba Subzwari (CHARTERED ACCOUNTANT) (501 Points)
27 July 2010Whether TDS on Freight paid to Transporters comes under sec 194C (payment to contractor) plz reply N also tell me about the tds rates which r applicable to freight.....
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 27 July 2010
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.
This new subsection 6 of 194-C makes such transport contractor to compulsorily provide PAN to the Deductor, failing to which TDS will be made by Deductor as per 194C.
Tds rates are 2% for others & 1% for Ind. and HUF
Atul Gupta
(Ca final Article)
(39 Points)
Replied 27 July 2010
Hii Nuba,
Kumar Gaurav gives the Right answer.......
But if Transporter Doesn't furnish the PAN no. then TDS rete will be 20%.
So check it while doing audit,..
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