Sumiti Jain (FP) (1364 Points)
26 May 2012My Client is a Transporter receiving money from respective parties for transporting their goods and paid the freight.
E.g. Rs. 45000 is recd. from the party and paid Rs. 43000 for the frieght for various trucks..
Now the que is what is the liability of my client regarding TDS deduction and regarding the TDS Return is PAN No. of various Transporters are taken?
Is TDS deducted on Rs.43000?
Is In Profit & Loss A/c Gross Receipts shown Rs. 45000 and exp. is shown Rs. 43000?
Please clarify the facts
neeraj
(CA)
(930 Points)
Replied 26 May 2012
I think yes u have to deduct TDS on 43000 @ 20% (If PAN is not submitted by transporter ) and book Rs. 2000 as misc. income , further i think u have to pay Service tax on GTA on Rs.43000
Sumiti Jain
(FP)
(1364 Points)
Replied 26 May 2012
In GTA Services ST is paid by the receiver then why there is ST liabilty?
Will u plz further clarify this aspect?
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 26 May 2012
Hi Sumiti,
In case of GTA, the person paying freight shall be liable to pay the Service Tax (In case the consignor or consignee is a co., firm, regd co-op society etc)
In your case, you have to take the PAN of all the truckers and then don't deduct TDS. In case they don't then deduct @ 20%.
The payment exceeds the threshold limit of Sec 194C, hence even though you have not deducted Tax you have to show the same in the TDS return using the "T" tag.
Regards
Prateek
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