Sachin Waje (Taxation Executive) (102 Points)
26 September 2015Dear Sir,
We have pay Rs. 32000/- to courier company for material transport for testing purpose.
We have to deduct TDS on the same or not.
Please advice
Thanks and Regards
Sachin Waje
Miss Rinkal
(Student)
(1309 Points)
Replied 26 September 2015
Yes TDs is required to be deducted for payments made to courier. The TDS provisions of Sec 194C will apply (presuming you have business having turnover of 1 crore / profession having gross receipts of 25 lakhs and hence liable for tax audit. If not then TSS provisions does not apply)
RATES OF TAX DEDUCTION: Rates of TDS from payment to contractors and sub-contractors are as under:
| S. No. | Nature of Payment | TDS Rate if PAN available | TDS Rate if PAN not available |
| 1. | Payment / Credit to resident individual or HUF | 1 % | 20 % |
| 2. | Payment/Credit to any resident person other than individual / HUF | 2 % | 20 % |
| 3. | Payment/ credit to Transporters | NIL | 20 % |
Note:- No Surcharge, Education Cess and SHEC shall be added. Hence, TDS shall be deductible at basic rates
When is tax not deductible (threshold limit)?
Amount credited/paid is ≤ Rs.30,000 in a single payment/credit OR Amount credited/paid in aggregate during the FY is ≤ Rs.75,000
CBDT came up with another Circular namely CIRCULAR NO. 715 DATED 3-8-1995 clarifying several queries and bringing various types of contracts in the ambit of section 194C. The following nature of contracts were included-
Payments made to clearing and forwarding agents;
Payments to couriers;
Payments to transporters; and
Supply of printed material
CAclubindia
