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Tds on transporter

BINOD PANDEY (ASST.MANAGER-ACCOUNTS) (29 Points)

24 May 2016

Dear Sir/Madam , Please tell me that if a transporter's bill amount is under threshhold limit that is below Rs.75000/- and does not provide PAN number, Should we deduct TDS @ 20% for not providing PAN number by transporter.

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Muralidharan (Self Employed) (1034 Points)
Replied 24 May 2016

Dear Mr.Binod Pandey

If the transporters AGGREGATE bill amount is less than the threshold limit of Rs.75000/- (Rs.1.00 lac wef 01.06.2016) (provided no single bill should exceed the limit of Rs.30000/-), does not attract the provisions of Section 194C for deduction of tax at source. Even if the transporters does not give valid PAN there is no necessity for you to deduct tax at source. Further there is no necessity to report such transaction in the tds returns.

However if the threshold limit of single bill exceeding Rs.30000/- or aggregate billing of Rs.75000 / Rs.1.00 lac is likely to cross in a financial year, then you have to obtain valid PAN from the transporter. In addition to PAN you have to obtain a declaration stating that the transporter does now own more than ten goods carriages during the previous financial year. Upon receipt of valid PAN and the above said declaration, you need not deduct tax from such transporters. However you need to report such transactions in the quarterly tds returns.

with regards

Muralidharan