TaxTMI 
TaxTMI 
Question - What are proposed amendment in section 194C of the Income tax Act in Finance Bill 2015 ?
Clarification regarding deduction of tax from payments made to transporters
28 Feb 2015 
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TDS exemption for transporters narrowed to qualifying small operators who furnish PAN and a declaration.
The proposed amendment restricts the non-deduction of tax on payments characterized as transport charges to contractors engaged in plying, hiring or leasing goods carriage who qualify to compute income under the presumptive transport provisions and who furnish a declaration along with their PAN, thereby limiting the exemption to transport operators below the statutory ownership threshold and introducing a documentary condition for claiming the relief. (AI Summary)
The proposed amendment restricts the non-deduction of tax on payments characterized as transport charges to contractors engaged in plying, hiring or leasing goods carriage who qualify to compute income under the presumptive transport provisions and who furnish a declaration along with their PAN, thereby limiting the exemption to transport operators below the statutory ownership threshold and introducing a documentary condition for claiming the relief. (AI Summary)