Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Tds on transporter

aman gupta (article) (48 Points)

05 September 2015

One of my client has transaction with a transporter who does not own any carriages. then is there any liability of TDS on them ?? If anybody have any knowledge on this, kindly reply .....

Reply
Follow
Share

6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 05 September 2015

If the transporter does not own any vehicles, then tax has to be deducted at source.

Upgrade to CAclubindia Pro. Subscribe Now!

CA D.C. Bansal (Accounts Head) (283 Points)
Replied 05 September 2015

If the transporter does not own any vehicle then you need not to deduct TDS. However, you will have to take declaration from the transporter declaring that he does not have any vehicle.

aman gupta (article) (48 Points)
Replied 05 September 2015

kindly support your answers with any reference of law also..

aman gupta (article) (48 Points)
Replied 05 September 2015

As the wording of law is that " If a person is carrying on the business of plying, hiring and leasing of goods and he does not have more than 10 goods carriages then there is no requirement to deduct TDS. But what will happen if the trasporterdoes not own any carriage ????

CMA Poornima Madhava (CMA) (13112 Points)
Replied 05 September 2015

Here it is:

(6) No deduction shall be made from any sum credited or paid or likely to be 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, 62[where such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with] his Permanent Account Number, to the person paying or crediting such sum.

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000041123&k=&IsDlg=0