CA SONIYA AGARWAL (self practice) (3005 Points)
27 December 2013how is tds charged on transport busines i saw 26as of one my client in which some has deducted tds and some has not , why so ?? , i saw his bank statement collection was around 26 lakh but in 26 as amount credited/paid was only about 8 lakh how could it be possible . i want to know how road carrier business works.
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 27 December 2013
Dear sonia,
Transportation is exepmted under tds but if transportation done with contract agreement with any transport company for material supply and receive for specific period, then tds will be applicable under 194C (TDS on contractor)
CA SONIYA AGARWAL
(self practice)
(3005 Points)
Replied 27 December 2013
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 27 December 2013
during the year your client has total service provided of Rs. 26 lakh which is showing in bank statement and out of this Rs. 8/- lakh is under contract service on which tds has deducted, which is showing in 26AS.
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 27 December 2013
in case of transport, quoting of PAN is mandatory....if PAN is not given then TDS would be deducted @ 20%........
now in the tds return, deductors are required to furnish details of charges paid to transport co. even if no tds has been deduccted.
here is the answer to your query....as no tds is deducted, therefore mostly assessees dont file the information of charges paid to transport co. while some other assessees complies with these requirements.....
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 27 December 2013
yes I agree with ravindra singh, in this case simply look the tds amount on form 26AS, is there tds deducted @ 20% on 8 Lakhs.
Ritik Zaveri
(Article Assistant )
(26 Points)
Replied 27 December 2013
sujeet
(properitor)
(41 Points)
Replied 28 December 2013
CAclubindia
