New rule for 194C (Transport) - Urgent

[Mathurthi RamKumar]

Dear Sir,

 

Good Morning... I have a confusion about new circular about 194C (Transport). From 1st June it is mandatory for submission of declaration for 'not having more than 10 vehicles' . Other wise 2% or 1% TDS will be deducted.

 

Above wording very clear about big transports like TCI, BATCO. etc. But for following situation how to understand? Kindly advise.

 

A) Outward freight - Company will bear freight amount and send manufactured product thru lorry to their customers. In this case 3 types of lorries will use.

 

1. Owner cum driver lorry

2. Only Driver

3. Contractor lorry (A to Z transporter is a contractor. He don't have own lorries and he will arrange lorry by commission basis) But he will issue LR copy A to Z transport name.

 

 

1) Owner cum driver - It is clear to take declaration from him but if he do turnover more than 75,000/- (limit the cross) what we do?

 

2) Only Driver - Lorry registered with house wife or other name and her son / husband or relatives will drive. My doubt is sign on PAN card and sign on declaration is should same is must or on behalf of signs will work?

 

3) Contractor lorry (Can we take declaration from contractor or driver?) . If contractor denied to give declaration what we do? Contractor give declaration but his turnover crossed limit. what we do?

 

Thanks in advance.

Regards

M.RamKumar

AI Summary

TDS on transport contractors: declaration of vehicle ownership required to avoid withholding under contract payment rules. Mandatory submission of a declaration for not having more than 10 vehicles applies to carriage payments from 1 June; without it, TDS deduction under section 194C at prescribed rates will be made. Practical issues queried include (a) owner cum driver turnover exceeding the threshold, (b) drivers operating vehicles registered in relatives' names and whether PAN/signatory matching or authorized signing suffices, and (c) contractor/arranger cases where declaration is refused or the contractor's turnover exceeds the threshold, raising questions on from whom valid declaration should be obtained and withholding consequences.