QUERY REGARDING 194C

[Rajeev Khulbe]

GOOD MORNING TO ALL EXPERTS,

I AM SOME CONFUSED ABOUT SECTION 194C(6) REGARDING TDS ON PAYMENT ON TRANNSPORTER. SIR PLEASE CLEAR MY SOME DOUBT REGARDING SECTION 194C(6).

1 - SUPPOSE WE RECEIVED A BILTY AMOUNT AMOUNT ABOVE 30000 AND TRANSPORTER ALSO PROVIDING ME DECLERATION THEN IN THIS CASE WILL I DEDUCT TDS ON THAT AMOUNT.

2- IF WE HIRED A REGULAR TRANSPORTER AND IF HE HAVE LESS THEN HEAVEY AND LIGHT VEHICLE . BUT HIS ANNUALLY PAYMENT CROSS THE LIMIT 1 LAKH. THEN WILL I DEDUCT TDS ALSO IN THAT CASE. WHILE HE PROVIDED ME DECLERATION.

THANKS

FOR YOUR QUICK REPLY

RAJIV

[Ganeshan Kalyani]

Sir with effect from 01.06.2015, TDS will not be deducted if the transporter owns 10 and less than 10 transport carriage and gives a declaration to the person making the payment. if declaration is not given which is subject to the above mentioned conditions then TDS is deductible. Thanks.

[Rajeev Khulbe]

SIR THANKS FOR REPLY BUT SIR MY CONFUSION REGARDING TDS ON TRANSPORTER IN CASE OF " IF PAYMENT EXCEED THE THRESHOLD LIMIT. THEN WILL I DEDUCT TDS IN BOTH CASES

[Ganeshan Kalyani]

Sir if the declaration as stated in my reply is not available then on exceeding the threshold limit TDS shall be deducted. Thanks.

AI Summary

TDS on transport payments exempt when small-owner transporter provides declaration; otherwise TDS applies on exceeding threshold.
Section 194C(6) provides that if a transporter who owns a limited number of transport carriages furnishes a declaration to the payer, the payer need not deduct tax at source on payments to that transporter; if no such declaration is furnished, the payer must deduct tax at source when payments exceed the statutory threshold.