MY CLIENT HAS PAID HIRING CHARGES OF DELIVERY VAN ON DAILY BASIS USED TO TRANSPORT GOODS.
WHETHER TDS NEEDS TO BE DEDUCTED ON SUCH HIRING CHARGES PAID AND IF YES UNDER WHICH SECTION?
PLEASE REPLY FAST...
CA CMA CS VIRAG SHAH (9773395720) (759 Points)
27 February 2010MY CLIENT HAS PAID HIRING CHARGES OF DELIVERY VAN ON DAILY BASIS USED TO TRANSPORT GOODS.
WHETHER TDS NEEDS TO BE DEDUCTED ON SUCH HIRING CHARGES PAID AND IF YES UNDER WHICH SECTION?
PLEASE REPLY FAST...
Chintan Shah
(-)
(534 Points)
Replied 27 February 2010
Dear Virag,
As per Section 194C Any amount paid / credited to the contractor engaged in business of plying, hiring or leasing goods carriages, who furnishes PAN to payer is exempt from deduction of TDS. If PAN is not furnished by such contractor the normal rate (2% for contractor & 1% for sub contractor) will apply till March 31 2010. Thereafter rate of 20% will apply u/s 206AA.
Hence in your case no TDS is deductible if the carraige owner furnishes PAN. Other wise 2%/1%/20% deductible as above...
amit jain
(Chartered Accountant)
(532 Points)
Replied 27 February 2010
if pan is furnished by the transporter than no tax is deductible
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 27 February 2010
PAN IS FURNISHED THEN THERE IS NO TDS DEDUCTION OTHERWISE 2% OR 1% TO BE DEDUCTED UPTO 31ST MARCH 10 AND 20% THEREAFTER.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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