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Tds ontransporter

Girish (Audit Mangaer) (45 Points)

24 February 2015

Dear Professionals,

We have received letter from ITO TDS to show cause why TDS not been deducted on payment made to Transporters.

As per letter received, exemption provided for NO TDS on transporter is applicable only when Deductor is in the business of carrying/plying of goods carriage and not the payee. and such payee furnish his PAN to payer.

We are in the opinion and after reading many discussion on forum, exemption is available if Contractor i.e, Payee is in the business of plying, hiring of goods carriage and not the Deductor and furnishes his PAN to the person paying or crediting such sum.

Kindly provide your inputs.

Regards
Girish Gupta

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5 Replies

sri lakshmi revathi (internship) (73 Points)
Replied 24 February 2015

Please check this out if useful..

https://www.saraltds.com/articles/tds-transporters-nil.php

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Rajagopalakrishnan R (PARTNER) (1422 Points)
Replied 24 February 2015

Section 194C ,

Sub Section (6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.

Contractor is the person in transport business i.e the transporter, Person paying or crediting is the person using the transport services

CA rajeev (service) (36 Points)
Replied 25 February 2015

Originally posted by : Girish
	Dear Professionals, We have received letter from ITO TDS to show cause why TDS not been deducted on payment made to Transporters. As per letter received, exemption provided for NO TDS on transporter is applicable only when Deductor is in the business of carrying/plying of goods carriage and not the payee. and such payee furnish his PAN to payer. We are in the opinion and after reading many discussion on forum, exemption is available if Contractor i.e, Payee is in the business of plying, hiring of goods carriage and not the Deductor and furnishes his PAN to the person paying or crediting such sum. Kindly provide your inputs. Regards Girish Gupta

CA rajeev (service) (36 Points)
Replied 25 February 2015

But what to do when instead of Transporter , the other service provider raise bill of transport charges on the basis of kilometers i.e. Agent. Whether we have to deduct tax. He is a itermediary company and not original tranasporter

CA rajeev (service) (36 Points)
Replied 25 February 2015

But what to do when instead of Transporter , the other service provider raise bill of transport charges on the basis of kilometers i.e. Agent. Whether we have to deduct tax. He is a intermediary company and not original tranasporter