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TDS on Transporter U/S 194C

Tanay (CA Final Student) (274 Points)

23 September 2019

Is it TDS deductible if Transporter owns less than 10 goods carriage during the year and payment made to Transporter exceeds RS.100000 in such year???

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6 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14597 Points)
Replied 23 September 2019

As per section 194C (6) of the Income Tax act 1961 - No deductions shall be made form any sum credited or paid or likely to be paid during the previous year to the account of a contractor during the course of business of plying , hiring , or leasing goods Carriages , where such contractors owns ten or less goods carriages at any time during the previous year and furnishes declaration to that effect along with PAN to the person paying or crediting such sum .

please confirm with others also.

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 23 September 2019

Transporter needs to give declarations along with his PAN to claim exemption

Tanay (CA Final Student) (274 Points)
Replied 23 September 2019

Even if aggregate payment in a FY exceeds Rs.100000

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 23 September 2019

If aggregate Turnover exceeds to Rs. 1,00,000/- in a FY then also TDS is not deductible by transporter, However he should have PAN of all transporter, If PAN is not available then he would be liable to deduct TDS @ 20%.

Kapadia Pravin (17259 Points)
Replied 23 September 2019

TDS exemption under 194C is available to transporter owning 10 or less goods carriage at any time during the FY . For claiming , transporter needs to furnish a declaration to Assessee alongwith a copy of PAN.

For transporter not covered above, TDS is to be deducted at Normal rates 1 % or 2% beyond 1 lakh.

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 23 September 2019

1. TDS need to be deducted u/s 194C in case if the transporter is engaged in the business of plying, hiring and leasing of goods carriage.
2. However, an exemption has been provided to the transporter who is not owning more than 10 goods carriage at any time during the year. Transporters self-attested copy along with his PAN shall be provided for non-deduction of TDS. (sec 194C(6))
3. In your case declaration of the same should have been given by the transporter for non-deduction of TDS. Threshold limit will not be applicable and irrespective of the amount of payment if the declaration is provided then TDS may not be deducted u/s 194C.
Please correct me if the above solution has an alternative view.