Dilip (Working) (408 Points)
09 October 2009We are retail company in electronics. we have all together 37 stores in India accross 9 states. Our contractor provides logistic as well as management services to us. he charges freight as well as mngt chgs both together in one invoice. so want to know whether tds will be deductible or not....? Also is any kind of proof need to be taken from contractor to be covered in transport for nil rate of tds.
Rajkamal
(Manager)
(30 Points)
Replied 09 October 2009
| Originally posted by :Dilip | ||
|
As per teh revised TDS provision passed under this budget the TDS need not be deucted while making payment to Transport operator engaged in the business of plying hiring or leasing the vehicle. Hoever the intention of the revenue seems to stop the hardship of the transporters by not doing TDS provide they quote their PAN numbers and also there is increase in the cash payment limit from existing Rs. 20,000 to Rs. 40,000. Please note that this benefit is given to Transport operator's and npot agents who work as middlement between the carraige owner and the Company. You have to continue deducting TDS on the the Managment Charges as it falls under 194H and 194J. |
||
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
