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TDS on Hire of Transport vehicle

aniket (Accountant) (561 Points)

25 December 2010

Dear all

What is the rate of TDS on hiring transport vehicle and which section is applicable

Thanks in advance

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5 Replies

Sumiti Jain (FP) (1364 Points)
Replied 25 December 2010

I think 2 percent .

I m not sure plz clarify it.

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Joey Tribbiani (fdg) (2010 Points)
Replied 25 December 2010

The rate is governed by sec 194C,as per the recent amendment there will NO TDS on a person engaged in the business of transport business if he furnishes his PAN. If PAN is not available then rate will be 20% (206AA)

aniket (Accountant) (561 Points)
Replied 27 December 2010

on rental basis means hire for the month/year

Naresh Reddy (CA,Final) (123 Points)
Replied 27 December 2010

actualy there is 2% of TDS for transporters u/s 194c, but now this provision was amended that no TDS on transporters if he has PAN number otherwise 20% will be taxable from 01.10.10

Nirav (Bcom, LLB, CA Final) (107 Points)
Replied 29 December 2010

The rate is governed by sec 194C,as per the recent amendment there will no TDS on a person engaged in the business of transport business if he furnishes his PAN. If PAN is not available then rate will be 20%.