New Amendment for 194C (TDS on Transport)

[Mathurthi RamKumar]

Dear All,

Greetings to all,

Kindly clarify me about new amendment for 194C from June 1st 2015. In which cases we collect declaration?

1. XXX Transport agency having more than 10 lorries (RC in the name of company or prop.name)

2. YYY Transport will supply lorries (with hiring or leasing) (RC in the name of lorry owner only)

3. Raw material / Chemical suppler will send material with his own lorry (Most of them suppliers having own lorries) -

Kindly advise for above.

Regards

M.RamKumar

[CA ombir Singh Panwar]

As per existing provisions contained in sub-section (6) of the section 194C, no deduction shall be made from any sum credited or paid during the previous year to the transporter on account of freight charges on furnishing of his Permanent Account Number (PAN), to the person paying or crediting such sum. The intention was to exempt only small transporters as defined in S 44E of the Act. but The Bill proposes to amend sub-section (6) of the said section that no deduction shall be made from any sum credited or paid during the previous year to the transporter on account of freight charges if such contractor owns ten or less than ten goods carriages at any time during the previous year and furnishes a declaration to that effect along with his (PAN), to the person paying or crediting such sum. This amendment will take effect from 1st June, 2015.’

AI Summary

TDS on transport: exemption if transporter owns ten or fewer goods carriages and furnishes PAN plus declaration. Under the amended provision, no deduction is required from freight payments where the transporter owns ten or fewer goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number to the payer, thereby conditioning the exemption on ownership threshold and PAN-based declaration.