TDS on transporters

TDS shall not  be deducted of the transporters provided that teh same quoted their pan with the company lible to deduct TDS.

Originally posted by : Amol Gopal Kabra
	only to those who quote their PAN number to the person who is liable to deduct tax.

The Transporter has provided PAN. But the turnover is in Crores. Is TDS exemption still applicable

The doubt has arisen since finance act clearly states that tds exemption is available to transporters covered under 44AE and who provide PAN. There is no mention about 44AE in 194C. This appears to be contradictory.

In the act definition of transporter is not given.

So in my view exemption for no deduction of tax  should be given to big transporter only like TCIL

For small transporter deduct tax @ 1% or 2% ( Rate for individual and HUF 1% for others 2%) to avoid any complication at later stage

Whether filing of declaration in form 15-I read with rule 29D of the I.T. Rules,1962 is still applicable after the insertion of Sub-section 6 and 7 of Section 194C  (In case of Transporter) ?

Whether this sub-section 6 & 7 applies only in cases where the deductor obtains the PAN of the transport operators along with a declaration in form 15-I of the I.T.Rules,1962 from them before crediting or paying any sum to the transport operators. (Form 15-I is relevant to only those transport operators who are 'Individual' and 'who do not own more than two goods carriage' at any time during the year under consideration) ?

is it neccesary that both the parties should be transporters for availing the exemption ?

eg- party A (transporter) hires vehecles from B(transporter) to provide services to C