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Tds on transporter of goods

Tushar (ca final) (147 Points)

06 November 2014

if a transporter quote his pan then no tds will deducted but whether a company for their practice can deduct tds @ 2%

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6 Replies

NOUFAL (ACCOUNTANT) (762 Points)
Replied 06 November 2014

As per my knowledge, there is no need to deduct the tds. if they deduct the tds they can provide the tds certificate.

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CA Parul Saxena (CA) (8488 Points)
Replied 06 November 2014

No need to deduct the tds as he has provided his PAN no.

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 06 November 2014

As Noufal and Parul saxena said no need to deduct T.D.S as they submitted PAN to you but for Internal control purpose company may deduct T.D.S if receipient agreed to receive net amount. But above transaction come under Contract for T.D.S purpose so you need to deduct T.D.S @ 2% if payee is company otherwise deduct @ 1%.

CA Kumar Ajay (Following My Dreams) (228 Points)
Replied 06 November 2014

Can Deduct

Jignesh Divecha (SERVICE) (22 Points)
Replied 06 November 2014

Non deduction on transportation needs to be separately disclosed in etds returns. TDSneed not be deducted

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Dhaval Karania (Prop) (23 Points)
Replied 07 November 2014

Tds need not be deducted provided the transporter gives pan. If not then deduct tds @ 20%. As no pan is available. And we have to consider highest rate for deducting tax. Also the same need to be disclosed in the tds return.