CA Manikandan.A.V (FINANCE & ACCOUNTS) (789 Points)
23 July 2010Hello,
It is specified in the Circular No. 05/ 2010 issued by the CBDT that Transport operator in order to be exempted should be as defined u/s 44 AE ie, who should hold not more than 10 vehicles. In that case isn't it necessary to deduct TDS to a Transporter who is not covered u/s 44 AE even if he provides his PAN?
Manikandan.A.V
Akhil Gupta
(Manager F&A)
(856 Points)
Replied 23 July 2010
Dear Manikandan
Nice observation. But I think that the scheme of Sec 44AE is talking about presumted income in case of small taxpayers (truck operatiors) having less than 11 trucks. Whereas the provision of TDS on transporter covered under section 194C. It does not have any relation with Sec 44AE. So, there will be NIL rate of TDS to transporter who provide their PAN.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
