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Tds on gta

Anshuman (Article Assistant) (87 Points)

12 March 2015

Dear All,

Please clarify whether Tax is to be deducted on payment made to a goods transport agency. If yes, under which section and

if possible, any case law regarding the same.

Thanks in advance.

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12 Replies

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 12 March 2015

Dear Frnd

GTA covers under section 194C of Income Tax.

But you need not to deduct TDS if Transporter is Providing PAN No.

If No PAN available than deduct TDS @ 20% under section 194C.

1 Like

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 12 March 2015

Agree with Jay Kumar

Ya if PAN not furnished by GTA then TDS to be dedcuted at the rate of 20% or applicable rate as per Sec 194C(1 or 2%) whichever is higher(Sec 206AA of I.T Act,1961.

Anshuman (Article Assistant) (87 Points)
Replied 12 March 2015

Accroding to Section 194C of the ITA, 1961 -

definition of work includes 'carraige of goods and passengers by any mode of transport other than by railways'

So, Tax needs to be deducted on the same @ applicable rates or 20% if pan not furnished?

Kindly correct me, if i am wrong!

Thanks.

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 12 March 2015

Ya in every case where PAN not furnished by deductee TDS to be deducted @ 20% as per Sec 206AA or as per rate prescribed in the section., whichever is higher.

1 Like

Muali Harish (articles) (223 Points)
Replied 13 March 2015

IfCenvat credit on capital goods was not taken then tds rate is nil and he must provide his pan

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Rajiv (Senior Accounts Officer) (1548 Points)
Replied 13 March 2015

But all experts in budget 2015 rules are changed to deduct tds on gta.now tds deducted on transportation who have more then 10 goods carriage and not covered u/s 44AE.IF I AM WRONG PLEASE GUIDE ME

Rinkoo sharma (Asstt. Manager) (37 Points)
Replied 13 March 2015

There is no TDs on GTA if provide pan no if not than deduct 20 %as higher rate under sec 194c

Anshuman (Article Assistant) (87 Points)
Replied 13 March 2015

@ rinku,

Where does the act say that no TDS is to be deducted if PAN No. is provided??

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 13 March 2015

https://www.simpletaxindia.net/2015/03/tds-on-big-transporters-proposed-to-be.H T M L

PLEASE READ THAT TDS ON GTA ONLY TRANSPORTERS NOT COVERED U/S 44AE

Bhavesh H Sanghavi (Proffesional) (42 Points)
Replied 13 March 2015

Agree with Rajiv

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Pramod (Student) (24 Points)
Replied 14 March 2015

Abe Aman ur Hostle roomie is in transport business talk to him about this matter

SURANA (PROPRIETOR) (515 Points)
Replied 10 April 2015

According to what i read in one of the Union Budget book, now one has to deduct TDS on Transport if the transporter has more then 10 goods carrier.

Kindly Confirm it…

‘Clarification regarding deduction of tax from payments made to
transporters [Section 194C (6)] :
Under the existing provisions contained in sub-section (6) of the section 194C,
no deduction shall be made from any sum credited or paid during the previous
year to the account of a contractor during the course of business of plying, hiring
or leasing goods carriages, on furnishing of his Permanent Account Number
(PAN), to the person paying or crediting such sum. The intention was to exempt
only small transporters as defined in S 44E of the Act.
The Bill proposes to amend sub-section (6) of the said section so as to
provide that no deduction shall be made from any sum credited or paid during
the previous year to the account of a contractor during the course of business
of plying, hiring or leasing goods carriages, where such contractor owns ten
or less than ten goods carriages at any time during the previous year and
furnishes a declaration to that effect along with his (PAN), to the person
paying or crediting such sum.
This amendment will take effect from 1st June, 2015.’