TDS ON TRANSPORT AGENCY

[SURYAKANT MITHBAVKAR]

Please provide us TDS deduction Condition on transport Agency as per latest notification.

[CA ombir Singh Panwar]

As per amendment by the Finance Act 2015, w.e.f 01.06.2015, it is proposed to amend the provisions of section 194C of the Act to expressly provide that the relaxation under sub-section (6 ) of section 194C of the Act from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage who fulfils the following two conditions:(a) such contractor owns ten or less goods carriages at any time during the previous year, and(b) such contractor furnishes a declaration in the prescribed Format along with his PANthen who make the payment of transport charges will be required to intimate PAN details in form 26Q to the income tax department

[RAMA KRISHNA KNVS]

Finance act 2015 (SEC43) itself have clear provision on this. w.e.f 01.06.2015 those who do not give declaration in the prescribed form along with their PAN, will be subjected to TDS u/s 194C. NO SEPERATE NOTIFICATION REQUIRED/ISSUED/

AI Summary

TDS on transport charges requires contractors to submit prescribed declaration with PAN or payees must deduct TDS. The relaxation from TDS deduction on payments characterized as transport charges applies only where the contractor engaged in transport (plying, hiring or leasing goods carriages) owns ten or fewer goods carriages during the previous year and furnishes the prescribed declaration with PAN; absence of that declaration with PAN mandates deduction of tax and payers must intimate PAN details in the prescribed reporting form.