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Tds on transporter

14 May 2015

As per last budget - small transporters who owns less than 10 trucks are exempt from TDS. They have to provide declaration they are owner of less than 10 trucks, hence, TDS not to be deducted on them. Most of the transporters are arranging third party trucks for their business. They are providing hundred trucks every month. Their payment is more than 10 lacs per month. Whether TDS is to be deducted in this case inspite of declaration given by transporter.

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1 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 15 May 2015

I have also some queries in this regard.

1. Most of the cases, transport contractor arranges the truck. They deal with truck driver ( Mostly in case of truck arrived from other states). In this case the owner is out picture. Then who will sign the declaration. The driver can sign on befalf of owner.

2. LR ( Lorry receipt) is issued by transport contractor. Then the contractor shall have to issue the declaration or the owner of the truck.

3. If LR is in favour of Transport Contractor, the TDS shall be credited to him or Transport Ower. If owner, then LR of Transport Contractor is considered or not. (Owner never issue LR most of the cases when Truck arrived from other states) The Local Transporter issues the LR.