niloy sanyal (account manager) (777 Points)
04 June 2016Last Month (May,2016) We have purchase a Machine for Rs.65 Lac. & for this Machine Trasit Purpose TRANSPORT COMPANY Charges Rs. 60 Thousand (Including Service Tax)and Transport Company provide PAN No.
1) Can we deducted TDS against TRANSPORT COMPANY Invoice .
2) IfYes then Explain Details
3) If No then Explain Details - can it is compulsory to show this invoice Value in TDS return (26 Q)
CA Mohit Khattar
(Practicing Chartered Accountant)
(50 Points)
Replied 04 June 2016
In my opinion, TDS u/s 194C shall be applicable in your case as the payment exceeds Rs. 30,000 per contract.
Also, as per the new provision of Section 194C which states as under
If transporter is not owning more than 10 goods carriage at any time during the previous year, then we, as payers (Tax deductors) have to obtain a declaration from transporter along with his copy of PAN before credit or payment to transporter, whichever is earlier and If the transporter is owning more than 10 goods carriage at any time during the year, then we, as payers are liable to deduct TDS at the time of paying charges to goods transporter at the rate of 1% or 2% as the case may be.
CAclubindia
