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WHAT IS THE LIMIT FOR CASH PAYMENTS IN CASE OF TRANSPORTERS?

nikunj khanna (profession) (28 Points)

20 July 2009

ACORDING TO SECTION 43B OF IT ACT AND RULE 6DD OF IT RULES, CASH PAYMENT ABOVE 20,000 IS DISALLOWED.

WHAT IS THE LIMIT FOR CASH PAYMENT FOR FREIGHT ,ETC. IN CASE OF TRANSPORTERS.

IF THERE IS ANY SUCH NOTIFICATION, WHEN SUCH IS APPLICABLE FROM?

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13 Replies

CA Amit Goyal (PARTNER) (71 Points)
Replied 20 July 2009

HI.

In the Current Budget the FM has increase the payment limit to Rs. 35000 for the Freight and payment to Transporation Services.

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CA Amit Goyal (PARTNER) (71 Points)
Replied 20 July 2009

transactions effected on or after October 1, 2009

Jiten M. Trivedi (Article Assistant) (56 Points)
Replied 20 July 2009

Yes CA Amit Goyal is right,

kariyappa.S.C (Finance Professional) (79 Points)
Replied 21 July 2009

Hai,

In the new budget freight comes under tds or not and it comes what is the percentageof dedection of tds

Regards

Kariyappa

CA Amit Goyal (PARTNER) (71 Points)
Replied 21 July 2009

Hi Kariyappa

As i understand from the budget now the freight is not cover under sec 194C hence there will be no TDS if the transporter provide the PAN No. and further there is one more requirment has been added that the Company who has made the payment to transporter will submit the details to income tax department that contain the transporter name and total amount of payment made to that party.

Regards,

CA Amit Goyal

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CA Harsh Joshi (CA) (23 Points)
Replied 21 July 2009

An exception is introduced in section 40(3), the limit is increased to Rs. 35000 in case of payment for plying hire or leasing of goods or carriage.

Transportors who furnish their PAN nos. would not be subject to TDS w.e.f. 1/10/2009.

SUNIL SINGH (Auditor) (46 Points)
Replied 29 September 2009

WHAT IS THE NOTIFICATION No. OF NOT DEDUCTING TDS ON TRANSPORTERS?

AND WHAT IS PROCEDURE OF SUBMITTING THE THE DETAILS OF THE SAME TO TH INCOME TAX DEPARTMENT?

Sunil JAin (Practice) (24 Points)
Replied 30 November 2009

In case of Transporters Cash upto 35000/- can be made.

Shashi Bhushan (Learner, Jalandhar) (996 Points)
Replied 01 December 2009

Amendment of section 40A.

In section 40A of the Income-tax Act, in sub-section (3A), after the proviso, the following proviso shall be inserted with effect from the 1st day of October, 2009, namely :

Provided further that in the case of payment made for plying, hiring or leasing goods carriages, the provisions of sub-sections (3) and (3A) shall have effect as if for the words twenty thousand rupees, the words thirty-five thousand rupees had been substituted..