Seller raise different invoice against goods sold and transport expense for such goods paid by seller to transporter.
Is seller liable to deduct TDS from seller's invoice for transportation expense paid to transporter by seller?
TDS is to be deducted under section 194C if payment is made to transporters and no TDS has to be deducted if the number of good carriages owned by the concerned transporter is not more than 10 and also he furnishes a declaration for the same along with his PAN.
If PAN is quoted by the transporters, then deduct TDS @ 1% or 2% as applicable, and if not quoted then deduct @ 20%. A declaration is required if the transporter is not owning more than 10 goods carriage at any time during the previous year, and the deductor needs to collect it along with copy of PAN of the transporter as per board circular no. 19/2015, dated 27/11/2015.
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