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TDS RATE U/S 194C

ashok anand (ACCOUNTS EXECUTIVE) (61 Points)

05 June 2010

Welcome to everyone here.

nyone can help me about the Rate of TDS U/s 194C for payment to a Transporter who do not provide PAN and amount payable is RS. 5000/-.

Anand

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6 Replies

Prejith (Pursuing CA) (92 Points)
Replied 05 June 2010

Sir,

I don't think that in your case TDS is required to be deducted since the payment is less than Rs. 20,000/- . Moreover TDS is not required to be deducted for the payment made to a transporter if he provides PAN no.

If the amount paid to him qualifies for deduction u/s 194C then the rate would be 2% for other than Individual and HUF and 1% for individual and HUF provided he doesn't provide the PAN no.

For now, I don't think TDS is required to be deducted in your case as the payment doesn't qualify u/s 194C even though the transporter has not provided PAN no.

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CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 05 June 2010

No T.D.S. is not deductible as the threshold limit for the same is Rs. 20,000.00 per contract or Rs. 50,000.00 p.a.

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 05 June 2010

First since the payment was not more than Rs.20000, TDS LIABILITY is not there.

Further, if the single payment exceeds Rs.20,000 (say Rs.21500 paid), then for a Deductee who din't provide PAN No. then 20% Tax should be Deducted, since 20% is higher than 1%

Rahul (CA Practice ) (1818 Points)
Replied 06 June 2010

As per Finance Act 2010 limit of Rs. 20000 is raised to 30000 and 50000 to Rs. 70000

Originally posted by : Abhishek K. Pandey
	No T.D.S. is not deductible as the threshold limit for the same is Rs. 20,000.00 per contract or Rs. 50,000.00 p.a.

shrenik (propreitor) (22 Points)
Replied 18 June 2010

hi, my payment stands under Rs 24750, on 05/11/2009. And I don't have the PAN details of the sub-contractor. Can anyone guide me in, what should be the TDS for this entry?

thanks

regards,

shrenik